Buy LIC Housing Finance Q4FY11 Result Update; Robust performance; Target: Rs 250 : Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

LIC Housing Finance

Robust performance; maintain BUY

BUY

CMP: Rs 225                                        Target Price: Rs250

---

n     LICHF’s PAT of Rs2.9bn (adjusted) and NII of Rs4.2bn ahead of street estimates driven by NII on Rs12bn of portfolio taken over from LIC (parent)

n     NIMs surprisingly expanded by 31bps driven by revision in lending rates and retiring of some legacy high cost borrowings. We build ~20bps contraction for FY12E

n     NPAs remain contained as the gross and net NPAs declined by 25% and 82% respectively with provision cover improving to 94% vs 82% in Q4FY11

n     At the CMP, the stock is quoting at 2.2x/1.8x FY12E/FY13E ABV. We maintain our BUY recommendation on the stock with target price of Rs250 (2x FY13E ABV)