Sharekhan recommended Hold rating on LIC Housing Finance with a target price of Rs 550 in its research report dated May 06, 2019.
Sharekhan's research report on LIC Housing Finance
LIC Housing Finance (LICHF) posted mixed Q4 FY19 results, with healthy topline and operating profit growth, but asset quality deteriorated sequentially. Advances growth was moderate, with overall loan book increasing by 16.2% y-o-y, largely in line with the past trajectory. Despite modest valuations at present, at 1.2x FY2021E BV, the overhang of rise in delinquencies in the developer book, limited scope of ROA expansion and modest growth indicate that there may be limited upside for the stock.
We downgrade our recommendation to Hold with a revised PT of Rs. 550.
For all recommendations report, click here
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