LIC housing Finance Update Report By IndiaNivesh
| LIC housing Finance Update Report By IndiaNivesh | |
| Company: | LIC Housing Finance |
| Brokerage: | IndiaNivesh |
| Date of report: | June 27, 2016 |
| Type of Report: | Result Update |
| Recommendation: | Buy |
| Upside Potential: | 20% |
| Summary: | Better play in NBFC space… reiterate buy with PT of 575… |
| Full Report: | Click here to download the file in pdf format |
| Tags: | CAGR, LIC, NBFC, PT |
| We reiterate buy on LIC Housing Finance as it remains our preferred pick in Housing finance space over other NBFCs mainly due to 1) healthy Loan growth of 16% CAGR over FY16‐18E, 2) strong NIMs of 2.5%, 3) Best in class asset quality with Gross and Net NPA of 0.5% and 0.2% respectively, 4) strong earnings CAGR of 16% for FY16‐18E reflecting ROEs / ROAs of 19% / 1.4% for FY18E and 5) reasonable valuation of 2.3x and 2.0x for FY17E and FY18E ABV. Reiterate buy with target price of Rs 575, valuing it at 2.4x FY18E ABV. |
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