Views on LIC Housing Finance Limited 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst - Banking, Angel Broking) on LIC Housing Finance Limited 1QFY2017 Results:

Higher Provisions dents PAT growth, while business growth remained strong;

"LIC Housing has reported a good set of numbers for the quarter. While the reported PAT grew by only 7%, NII growth was strengthen up by 25%. The company took additional provisioning to the tune of INR 90 cr due to ageing of some NPAs in the project loans and hence provisions remained higher at INR 116.5 cr vs INR 44.3 cr YoY. Loan book grew by 15.4%, backed by strong developer loans which went up by 39%. Though GNPAs went up to 0.59% from 0.45% it remains under control and we don't think this is a cause of concern. We believe loan growth will pick up in the quarters for LIC housing. At the current market price the stock is trading at 2.1x its FY18 Adj BV. We maintain BUY rating on the stock and retain our target price of INR 592."

Shares of LIC HOUSING FINANCE LTD. was last trading in BSE at Rs.518.95 as compared to the previous close of Rs. 513.9. The total number of shares traded during the day was 123081 in over 2714 trades.

The stock hit an intraday high of Rs. 522 and intraday low of 512.25. The net turnover during the day was Rs. 63856030.

Source : Equity Bulls

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