LIC Housing Finance - Q3FY14 Result Update - Microsec

LIC Housing Finance Ltd. announced its Q3FY14 result.

The company's total income increased by 4.39% QoQ and 22.98% YoY to INR2223.71 crores. Whereas, Profit After Tax (PAT) marginally decreased by 0.14% QoQ while increased by 27.57% YoY to INR310.07 crores. During the quarter, the company has increased its provisions by 99.35% QoQ and 390.92% YoY to INR34.07 crores.

The company disbursed a total of INR5947 crores as against INR5838 crores for the same period last year. Disbursements in the developer loan segment were INR265 crores as against INR121 crores for the same period last year. The Outstanding Mortgage Portfolio stood at INR83216 crores as against INR69119 crores on September 30, 2012, thus registering a growth of 20%. Moreover, the company has improved its Net Interest Margins (NIM) by 12bps YoY to 2.22%.

On the asset quality front, Gross NPAs in individual segment decreased by 15bps or INR32 crores to 0.46% or INR374 crores. Total Gross NPAs for the Company including NPAs on Developer Loans stood at 0.73% as against 0.60%. NPAs on Developers Loans was INR236 crores as on September 30, 2013 as against INR246 crores as on June 30, 2013. Net NPAs stood at 0.44% as against 0.28%.

Valuation

At the CMP of INR219.20, LICHFL is trading at TTM P/BV of 1.56x. The current valuation of 1.39x FY14E and 1.25x FY15E Book Value looks attractive. We recommend a BUY on the stock with a target price of INR317 with an upside potential of 44.75% from the current level with an investment horizon of 12 months.

Source : Equity Bulls

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