Buy LIC Housing Finance Ltd., target Rs 575: Nomura, India

Nomura, India has a buy call on LIC Housing Finance Ltd. with a target price of Rs 575. The current market price of LIC Housing Finance Ltd. is Rs 506. Time period given by analyst is year, when LIC Housing Finance Ltd. price can reach defined target. The net profit may be lower due to one-time provisioning on past NPA. Improvement in core mortgage trends is a key positive after 2-3 quarters, said the investment bank. The valuations at 2.1x FY18 book are reasonable for 20 per cent ROEs.