LIC HOUSING FINANCE LIMITED

COMPANY PROFILE

LIC Housing Finance Limited provides loans for purchase, construction, and renovation of houses/flats to individuals, corporate bodies, builders, and co-operative housing socie- ties primarily in India. As of March 31, 2013, it operated a network of 188 offices in India, and representative offices in Dubai and Kuwait. In addition, the Company also distributes its products through branches of its subsidiary LICHFL Finan- cial Services Ltd.

LIC Housing Finance Ltd was promoted by Life Insurance Cor- poration of India in 1989 and a public issue was made in 1994. It launched its maiden GDR offering in 2004. The Com- pany enjoys the highest rating from CRISIL & CARE indicating highest safety with regard to the ability to service interest and repay principal. For FY 2013, the Company sanctioned and disbursed loans totaling Rs 26,477 Cr. & Rs 24,358 Cr. respectively, registering a growth of 20 % & 22 % respec- tively over the previous year

For FY 2014, the Company’s total income from operations grew by 20.30 % to Rs. 9,214.71 Cr. as against Rs. 7,659.60 Cr. in FY 2013. For the same period, net profit went up by 25.37 % to Rs. 1,321.41 Cr. as against Rs. 1,054.00 Cr. in FY 2013.

 
STOCK INFORMATION

STOCK PRICE

467.60

TARGET PRICE

480-490

SECTOR

FINANCE-HOUSING

SYMBOL (AT NSE)

LICHSGFIN

ISIN

INE115A01026

FACE VALUE (IN RS.)

2.00

BSE CODE

500253

 
STOCK FUNDAMENTALS

MARKET CAP

23,565.24

BOOK VALUE

149.26

EPS - (TTM) (IN RS. CR.)

26.95

P/E

17.33

INDUSTRY P/ESHAREHOLDING PATTERN

29.77

 
INVESTMENT RATIONALE

Key fundamentals supporting the stock should be strong growth in individual housing loans coupled with build up of project/LAP book which should lead to some margin im- provement. Interest rate declines will likely get passed on; however could be beneficial for loan growth which should accelerate back to 20%+ levels.

 
SHAREHOLDING PATTERN
Lic Housing Finance Limited Shareholding Pattern
 
OUTLOOK AND VALUATION

Management has guided for loan traction of 20% ahead. We have factored in 19% CAGR in credit over FY14-16E vs. 17% earlier. We have raised our FY15E NIM estimate to 2.35% from 2.3% earlier owing to declining trajectory in money market rates. We believe NIM improvement is the key cata- lyst for the stock to get re-rated higher. Accordingly, our PAT estimates increases to 19.7% CAGR to Rs 1887 crore over FY14-16E from 17.5% earlier. Recommend Buy with TP of Rs 480-490 Levels.

 
RESULTS (Quarterly )(Rs CR.)

 

SEP' 14

JUN' 14

MAR' 14

DEC' 13

SEP' 13

Sales

2,627.57

2,509.13

2,443.31

2,342.70

2,246.51

Operat- ing profit

2,552.26

2,432.52

2,363.08

2,278.70

2,140.05

Interest

2,064.27

1,976.36

1,874.29

1,854.30

1,770.31

Gross profit

519.11

490.61

523.43

458.07

425.65

EPS (Rs)

6.76

6.39

7.33

6.47

6.14

 
TECHNICAL VIEW

Lic Housing Finance Limited Technical View

LIC HOUSING FINANCE LTD is looking strong on charts. We advise to buy around 460-470 with stoploss of 448 for the targets of 480-490 levels. RSI is also showing upside momen- tum in it on daily charts

SYMBOL

VALUE

ACTION

RSI(14)

77.504

OVERBOUGHT

STOCH(9,6)

76.885

BUY

STOCHRSI(14)

93.206

OVERBOUGHT

MACD(12,26)

20.780

BUY

ADX(14)

40.348

BUY

WILLIAMS %R

-1.092

OVERBOUGHT

CCI(14)

112.6587

BUY

ATR(14)

32.6857

HIGH VOLATILITY

HIGH/LOWS(14)

66.1678

BUY

ULTIMATE OSCILLATOR

68.975

BUY

ROC

48.623

BUY

BULL/BEAR POWER()13

80.6420

BUY

BUY: 8 SELL:0 NEUTRAL: 3

SUMMARY : STRONG BUY

Our Other Recommendation for Next Week

SCRIP

ACTION

CMP

ENTRY

SL

TGT

TIME FRAME

UNION BANK

BUY

241.85

237-240

233

244-250

ONE WEEK

IDEA

BUY

160.70

158-160

155

165-170

ONE WEEK

TVS MOTOR

SELL

268.00

270-274

279

264-258

ONE WEEK

ELDER PHARMA

BUY

150.00

145-150

133

160-172

ONE WEEK

ASIAN PAINTS

BUY

780.05

775-780

765

790-800

ONE WEEK

Performance of Previous Week

SCRIP

LOT

ACTION

ENTRY

SL

TGT

P&L

REMARK

CLOSE/LOW/HIGH

CANARA BANK

1000

BUY

440-445

425

460-475

18000.00

NEAR TGT

451.65 / 458.80

UNION BANK

1000

BUY

230-235

230

242-248

7000.00

FIRST TGT HIT

241.85 / 245.80

RCOM

2000

SELL

83-85

88

81-78

4000.00

FIRST TGT HIT

102.25 / 105.20

VOLTAS

1000

SELL

244-246

250

234-224

10000.00

FIRST TGT HIT

247.20 / 234.00

ALLAHABAD

BANK

2000

BUY

128-130

125

134-138

12000.00

FIRST TGT HIT

132.75 / 136.95

ARVIND

1000

BUY

277- 280

274

284-288

8000.00

BOTH TGT HIT

283.75 / 291.45

NET PROFIT

 

 

 

 

 

59000.00

 

 

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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