LIC Housing Finance - Q1FY14 Result First-Cut - Microsec

LIC Housing Finance Ltd announced its Q1FY14 result on 14th August 2013.

The company's total income increased by 4.58% QoQ and 23.04% YoY to INR2148.87 crores. Whereas, Profit After Tax (PAT) marginally decreased by 1.79% QoQ while increased by 36.34% YoY to INR310.51 crores.

We believe, the regulator's recent norms to enhance funding to Real Estate developers and individual loan buyers by way of lowering capital requirement to set aside for providing a home loan by Housing Finance Companies (HFC) and also enhanced time frame of public deposits by HFC from 7 years to 10 years may act as a positive factor for the company.

At the CMP of INR180.20, the stock is trading at P/BV 1.39x. The current valuation of 1.15x FY14E Book Value looks attractive. We recommend a Buy on the stock.

Source : Equity Bulls

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