Buy LIC Housing Finance, target price Rs 490: Emkay Global

Emkay Global has buy call on LIC Housing Finance with a target price of Rs 490. The current market price of LIC Housing Finance is Rs 377.3. Time period given by analyst is one year when LIC Housing Finance Ltd. price can reach defined target.

LIC Housing Finance Ltd., incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 20751.13 Crore) operating in NBFC sector.

LIC Housing Finance Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income and Income From Financial Services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 5302.50 Crore, down -.64 % from last quarter Total Income of Rs 5336.48 Crore and up 8.94 % from last year same quarter Total Income of Rs 4867.22 Crore. Company reported net profit after tax of Rs 926.89 Crore in latest quarter.

Investment Rationale
The brokerage rolls over forecasts to Sep’23E and retains Buy rating with a Sep’23E TP of Rs490 (earlier Rs450), valuing the firm using the excess return on equity (ERE) method. Its TP implies a Sep’24E P/BV of 0.8x (same as earlier). Key downside risks: Further asset-quality weakening in the non-core housing and project loans segment.

Promoter/FII Holdings
Promoters held 45.24 per cent stake in the company as of 30-Jun-2022, while FIIs owned 20.67 per cent, DIIs 19.21 per cent.