Outperform LIC Housing Finance Ltd., target Rs 625 : Credit Suisse

Credit Suisse has Outperform call on LIC Housing Finance Ltd. with a target price of Rs 625. The current market price of LIC Housing Finance Ltd. is Rs 511.75. Time period given by analyst is year, when LIC Housing Finance Ltd. price can reach defined target. The branch checks give comfort on loan against property exposure. Credit Suisse sees LIC HF as a key beneficiary of govt's pay commission stimulus. The global investment bank is of the view that it has amongst highest earnings sensitivities to wholesale/bond yields Credit Suisse expect spreads to converge to FY16 incremental rates of 210 bps over the next few years. LIC Housing Finance is cheapest NBFC stock which is trading at 9x and 2x FY18 P/E and P/B respectively.