Buy LIC Housing Finance, target price Rs 530: Emkay Global

Emkay Global has buy call on LIC Housing Finance with a target price of Rs 530. The current market price of LIC Housing Finance Ltd. is Rs 400.

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 22470.07 Crore) operating in NBFC sector.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4722.93 Crore, down -2.96 % from last quarter Total Income of Rs 4867.22 Crore and down -5.31 % from last year same quarter Total Income of Rs 4987.64 Crore. Company reported net profit after tax of Rs 249.86 Crore in latest quarter.

Investment Rationale
The brokerage values LICHF at 1.0x Sep’23E BVPS, using the excess-returns-on-equity method for FY23-24E RoE of ~13.5-14%. Its TP of Rs 530 implies a 30% upside from the current price.

Promoter/FII Holdings
Promoters held 45.24 per cent stake in the company as of 30-Sep-2021, while FIIs owned 24.07 per cent, DIIs 14.96 per cent.