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 is Rs 379.2. Time period given by analyst is one year when LIC Housing Finance Ltd. price can reach defined target. .


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 30-09-2021, the company has 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 has reported net profit after tax of Rs 249.86 Crore in latest quarter.


Investment Rationale
Improved housing sales should result in strong 19% YoY growth in disbursements, leading to 12% growth in AUM. NIMs are expected to show minor improvements this quarter, mainly due to the absence of significant accrued income reversals. As it already follows a policy of daily stamping of NPAs and upgradation to standard only on full repayment of overdue, LICHF should not be very affected by the RBI’s new NPA clarifications.

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.