Buy LIC Housing Finance, target price Rs 575: Centrum Broking

Centrum Broking has buy call on LIC Housing Finance with a target price of Rs 575. The current market price of LIC Housing Finance is Rs 391.9. 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 21196.68 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 31-12-2021, the company reported a Consolidated Total Income of Rs 5078.68 Crore, up 7.53 % from last quarter Total Income of Rs 4722.93 Crore and up 3.09 % from last year same quarter Total Income of Rs 4926.65 Crore. Company reported net profit after tax of Rs 771.32 Crore in latest quarter.

Investment Rationale
There is no material change in FY22/23/24E earnings. The brokerage remains positive on LICHF as asset quality issues are being sorted as seen by the higher coverage on stage 1&2 and controlled stage-3. Hence it could be a key beneficiary of an economic upcycle. Retain multiple at 1.5x on Sep’23 ABV and TP is unchanged at Rs575. Risks: higher provisions, lower loan growth.

Promoter/FII Holdings
Promoters held 45.24 per cent stake in the company as of 31-Dec-2021, while FIIs owned 23.46 per cent, DIIs 14.92 per cent.