Views on LIC Housing Finance Limited 4QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst - Banking, Angel Broking):

"LIC Housing Finance came out with a good set of results for the quarter. NII grew by 30.6% YoY, however there was a marginal rise in cost as a result pre provisioning profit grew by 22.3% YoY. Though NII growth and PPP growth remained strong provisions went up at a higher rate than the business growth and hence PAT growth was at 18%. Loan book continued to see decent growth of 15% YoY backed by noncore portfolio, where in lAP grew by a 65% and developer loans grew by 60%.

Though LIC housing has been growing its loan book at steady pace it has been able to maintain a stable asset quality. Sequentially the asset quality has improved and GNPAs % went down to 0.43% vs 0.56%. One of the key positive during the quarter has been an improvement in the NIM which went up by 22 bps QoQ to 2.97%. We continue to have positive view on the Indian Housing Finance Companies and have an ACCUMULATE rating on the stock."

Shares of LIC HOUSING FINANCE LTD. was last trading in BSE at Rs.672 as compared to the previous close of Rs. 673.1. The total number of shares traded during the day was 168385 in over 4204 trades.

The stock hit an intraday high of Rs. 688 and intraday low of 664.55. The net turnover during the day was Rs. 113296196.

Source : Equity Bulls

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