Views on LIC Housing Finance 2QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on LIC Housing Finance 2QFY2016 Results:

"LIC Housing Finance reported 2Q FY2016 results, which were above consensus estimates, with PAT at INR 411.7 cr reflecting a growth of 21% yoy. NII grew substantially at 34% yoy, aided by healthy loan book growth of 17% yoy and higher margins, leading to 31% yoy growth in operating income at INR 780.3 cr. Provisioning expenses for the quarter came in at INR 30.1cr as compared to INR 44.3cr in 1QFY2016 and a writeback of INR 19.03 cr in 2QFY2015. We await clarity from the management regarding the asset quality performance during the quarter. The stock currently trades at 2.4x FY2017E ABV. We recommend BUY rating on the stock."

Shares of LIC HOUSING FINANCE LTD. was last trading in BSE at Rs.491.5 as compared to the previous close of Rs. 481.9. The total number of shares traded during the day was 519991 in over 11242 trades.

The stock hit an intraday high of Rs. 495 and intraday low of 480.55. The net turnover during the day was Rs. 254140453.

Source : Equity Bulls

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