Last Updated : Jun 23, 2020 07:16 PM IST | Source: Moneycontrol.com

Hold LIC Housing Finance; target of Rs 285: Sharekhan

Sharekhan recommended Hold rating on LIC Housing Finance with a target price of Rs 285 in its research report dated June 22, 2020.

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Sharekhan's research report on LIC Housing Finance

LIC Housing Finance Limited (LICHF) reported weak Q4FY2020 results, with operational performance below estimates due to muted demand for housing loans (impacted by the lockdown etc.) and contraction in spreads and NIM. About 25% of loans are under moratorium, which is reasonable. However, developer loan may pose risks to the estimated credit costs in FY2021E. Due to significant uncertainty on the asset-quality outlook and profitability, we have cut our FY2021E and FY2022E estimates and target multiples.

Outlook

We maintain our Hold rating on the stock, with a revised price target of Rs. 285.

For all recommendations report, click here

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