Buy LIC Housing Finance, target Rs 581: Dharmesh Kant

Dharmesh Kant, Head - Retail Research, MOSL, has given a buy rating to LIC Housing Finance at a target price of Rs 581.

The strong growth in high-yielding individual loan against property (LAP) is likely to act as a key growth driver for the stock. The decline in the cost of funds is likely to aid spreads improvement and is a key monitorable going forward. LIC has a stable and strong asset quality with GNPA/NNPA's at 0.45% and 0.20% respectively are key positive.