Why exactly is LIC Housing down!

The start of something big!

LICHSGFIN is lying dormant today with NBFCs as an industry yet placed well and seemingly no snares on the horizon for NBFC regulation with a well performing industry doing more for the social causes of the Central Bank including affordable housing than many are willing to admit. 

Results

June quarter income which had grown 37% in the previous year to September 11 (INR 15.4 B) has grown fiurther to INR17.7 B in June 2012, up sequentially by slightly less than 5%. on a June to June comparison, growth has been 23% Y/Y from INR 14.2 B . NII is still less than INR3.8B and after taxes, Net profit is INR 2.27 B for an annualised EPS of over 18.

Valuation

On ttm basis EPS is likely near 20 than 18 and with NIMs safe at these levels the company could well be looking at targets of 400 in institutional advisories. 

Competitive Universe

Scrips like GIC Housing have also generated interest with the perfect business model of LIC housing on display and above par returns on its investment portfolio as well as the potential growth of scalability by leaps and bounds

Housing Loans Portfolio

Loans to developers have fallen to less than 4 B in previous years’ quarterly increments itself that rerated the stock and the sector and retail disbursals are still more than INR 45 B in a quarter, sanctions 49B. Total Loan portfolio is INR 656 B, up 24% on year and NPAs are less than 0.4%

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s