LIC Housing Finance shares tank 6% after muted Q4 results

Shares of LIC Housing Finance tanked 6 percent in early trade a day after the company reported muted Q4 results. At 10:39am on May 17, the stock was down 5.93 percent, trading at Rs 371 on the NSE.

The housing finance firm reported a jump of 5.5 percent in its consolidated net profit, which came in at Rs 1,180.3 crore, as against Rs 1,118.6 crore in the corresponding period last year.

The company’s board suggested a dividend of Rs 8.50 per equity share of Rs 2 each for FY23, the company said in a statement. The board also announced that the dividend on equity shares will be given on or after the company’s annual general meeting (AGM).

The firm’s net interest income (NII) grew 22.1 percent and was Rs 1,990.3 crore for the March quarter, as against Rs 1,630 crore in the year-ago period. Its revenue jumped 21.04 percent to Rs 6,415.11 crore from Rs 5,299.66 crore last year.

For the quarter ended March, the total income of the company stood at Rs 6,415.17 crore, as against Rs 5,308.9 crore in the same quarter last year, reporting a rise of 20.83 percent.

Brokerage Views

Morgan Stanley is ‘underweight’ on LIC Housing Finance. According to them sharp improvement in loan spreads caused 19 percent NII beat. The target price given by Morgan Stanley is Rs 320 per share.

However, CLSA has given a ‘buy’ rating to LIC Housing Finance. According to them, the firm’s net interest margins (NIMs) expanded 50 bps to 2.9 percent. This is the highest in 24 quarters. The target price given by CLSA is Rs 550 per share.

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