Lancelot D'Cunha, CEO at ITI Wealth management told CNBC-TV18, "I am bullish on LIC Housing Finance and I do believe that it will probably hit Rs 350. The reason is that we have seen it under pressure, the net interest margins were under pressure. However, with interest rates easing up a bit, we will continue to see interest margins improve over the next two quarters."
"Also we are seeing loan book growth of around 25 percent specially driven by the first time home owners and the lower income buyers. So that is something which will be positive for LIC Housing. In terms of valuations it trades at about 2.6 times its book value which is fairly reasonable for a housing finance company as compared to HDFC which is trading much higher. So I do see some amount of expansion both in the price to book as well as in the growth numbers and Rs 350 would be a good one year target to expect," he said.
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