LIC Housing Finance Ltd., incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 24983.34 Crore) operating in NBFC sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 4979.91 Crore, up 1.08 % from last quarter Total Income of Rs 4926.65 Crore and up 1.56 % from last year same quarter Total Income of Rs 4903.54 Crore. Company reported net profit after tax of Rs 384.93 Crore in latest quarter.
Investment Rationale
While asset quality pain has been pronounced, the brokerage draws comfort from LICHF’s ability to source low-cost liabilities (due to its strong parentage), favorable Housing Finance cycle, and 14-15% RoE. Valuation at 1x FY23E P/BV is attractive. It factors in the announcement of a capital infusion into the estimates.
Promoter/FII Holdings
Promoters held 40.3 per cent stake in the company as of March 31, 2021, while FIIs held 28.2 per cent, DIIs 16.8 per cent and public and others 14.7 per cent.
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