LIC Housing Finance - 3QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research - Banking, Angel Broking) on LIC Housing Finance 3QFY2014 results:

"LIC Housing Finance reported a healthy operating performance for the quarter, with a operating profit growth of 27% yoy. NII growth for the company came in healthy at 22% yoy, probably aided by healthy loan book growth amidst expectations of stable margins. Non-interest income grew unexpectedly by 66% yoy to Rs. 34cr. In-line with the trends witnessed over last few quarters, Opex growth came in moderate at 9% yoy. The company registered operating profit growth of 27% yoy. The company reported provision writeback of Rs. 8cr, probably after utilising a part of the 160bp provisioning release on its teaser loan book and reported much higher earnings growth of 38% yoy. We await clarity from the management regarding the asset quality performance during the quarter. For companies like LIC Housing Finance, operating environment (particularly on the funding side) has eased considerably from the tough times witnessed in 2QFY2014, while retail housing loan growth and outlook remains buoyant. The stock currently trades at 1.3x FY2015E ABV. We recommend Buy rating on the stock."

Source : Equity Bulls

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