LIC Housing Finance Share Price: LIC HFL, promoted by the Life Insurance Corporation of India, is one of the largest housing finance companies in India. Incorporated in 1989, it provides long-term financing for residential property purchases, construction, and repairs, as well as loans against property. The company reported its Q4 results on May 13, with a 9.4 per cent rise in fourth-quarter net profit to Rs 1,497 crore from Rs 1,368 crore in the year-ago period, helped by lower provisions, even as its earnings dipped.
The Board of Directors also recommended 500% dividend opportunity, i,e a dividend of Rs 10 per equity share of Rs 2 each. The brokerages, such as Morgan Stanley, Nirmal Bang Institutional Research and Nuvama Research, shared their ratings on the finance stock. They hiked the target. Check whether you should buy or not.
LIC Housing Finance Share Price: Nirmal Bang on LIC HFL
The brokerage firm, Nirmal Bang, has maintained a hold rating and revised the target price upwards from Rs 525 to Rs 572. The brokerage target multiple is at a 46 per cent discount to the past 5-year average multiple of 1.2x. Due to concerns over pressure on margins, the brokerage maintains its ‘HOLD’ rating on the stock. Further reasons behind this rating:
LICHF’s 4QFY26 performance was better than the brokerage expectations at the NII/PPOP/PAT level by 4.5%/3.5%/5.5%.
Loan growth and disbursement growth improved to 4.4% YoY and 9.7% YoY, respectively, from 3.3% YoY and 4.0% YoY in Q3FY26.
BT-out reduced to Rs 11.87 bn in 4QFY26 from Rs 21.57 bn in 3QFY26, following a reduction in rewriting rates. LICHF established a specialised ‘Business Retention Department’ focused entirely on tracking and preventing BT-out requests.
The brokerage further expects NIMs to be under pressure due to competition from other banks and NBFCs. We believe NIMs should average at 2.7% over FY26-FY28E.
Asset quality trend improved; expect additional resolutions to come through in the coming quarters.
The brokerage has estimated a loan/earnings CAGR of 11%/11.18% in FY26-FY28E, resulting in RoA/RoE of 1.8%/14% in FY28E. Valuing LICHF at 0.65x its Mar-28E ABV (vs. 0.60x Mar-28E ABV earlier).
LIC Housing Finance Share Price: Nuvama Research on LIC HFL
Brokerages retain a ‘Hold’ rating on LIC Housing Finance, citing attractive valuations and an improving business outlook, while raising the target price to Rs 630 from Rs 525, valuing the stock at 0.74x FY27E book value.
LICHF posted healthy disbursement growth of 31% QoQ in Q4FY26 while AUM grew 2% QoQ/4% YoY due to continued pressure from BT-outs and intensifying competition in FY26.
NIM rose 11bp QoQ. PPOP grew 7% YoY/7% QoQ. Credit cost fell to 9bp from 18bp QoQ.
PAT grew 8% QoQ/9% YoY, beating consensus. Asset quality improved with GS2/GS3 declining QoQ.
AUM growth for FY27E is guided at 10–12% while NIMs for FY27E are guided at 2.5–2.7%.
Healthy disbursements, reduction in BT-outs and asset quality improvements remain key monitorables.
LIC Housing Finance Share Price: Morgan Stanley on LIC HFL
The brokerage firm, Morgan Stanley, maintains an underweight rating with a target price of Rs 450. Here’s why:
- The company’s PAT beats estimates by 17 per cent while loan growth slows to 4 per cent YoY.
- NII beats estimates by 3 per cent, aided by higher NIM
- Individual home loan growth slows to 3.6 per cent
- PPOP beats estimates by 10 per cent due to lower operating costs
- Credit costs moderate to 9 bps annualised
- Stage 2 and Stage 3 ratios improve QoQ and YoY
- Brokerage says weak loan growth remains a structural concern
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
