LIC Housing Finance - Thy time of reckoning has come - Emkay

Reco: ACCUMULATE
CMP: Rs 248
Target Price: Rs 290

- Worst for NIMs over: (1) NCDs maturing in FY14E at higher cost than current (2) margins in FY13E also beaten due to ill-timed borrowings and (3) benefit of bank loan repricing

- Key risks to our thesis: (1) further intense competition though LICHF's retail yields and loan book have shown resilience and (2) corporate NPAs

- LICHF's Q4FY13 NII/PAT at Rs4.6/3.1bn beat consensus by 8/24% respectively. Beat driven by unexpected 35bps qoq jump in NIMs

- Recent correction in stock price and valuations leaves decent upside of 17% especially with headwinds becoming tailwinds. Retain ACCUMULATE with TP of Rs290

Source : Equity Bulls

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