X

LIC Housing Finance Ltd. Stock Analysis

Mid Cap
Evaluated by 8110 users | BSE: 500253 | NSE: LICHSGFIN |
Finance - Housing

Incorporated in 1989, LIC Housing Finance Ltd is one of the largest Housing Finance Companies in India with a key objective of providing long term finance to individuals for the purchase or construction of house/flat for residential purposes in India. LIC...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
LIC Housing Finance Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)4,6576,1727,6989,27210,75112,47514,07214,87517,39519,737
Y-o-Y Gr. Rt.-32.5%24.7%20.5%16%16%12.8%5.7%16.9%13.5%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
20.0518.2320.7626.1227.6533.0538.4939.8548.2347.63
Y-o-Y Gr. Rt.--9.1%13.9%25.8%5.9%19.5%16.5%3.5%21%-1.2%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
88.3113.15129.46150.31156.14182.59221.05283.59323.61361.93
Y-o-Y Gr. Rt.-28.1%14.4%16.1%3.9%16.9%21.1%28.3%14.1%11.8%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)2.091.551.441.51.341.371.381.251.311.15
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
LIC Housing Finance Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income17.4%12.9%11.9%13.5%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
10.1%11.5%7.4%-1.2%
Book Value per Share
17%18.3%17.9%11.8%
Share Price 4.8% -7.5% -18.3% -26.7%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0.030.140.360.390.220.20.140.431.070
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >14% : Very Good
  • 12%-14% : Somewhat Good
  • <12% : Not Good
Capital Adequacy Ratio (%)14.8816.6916.5416.3815.317.0415.6416.0414.360
Margins
Net Profit Margin (%) 20.8114.8513.6914.251313.3713.813.513.9912.18
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 25.3918.5117.2218.7218.0719.5119.0715.7715.8913.9
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 40.31%
Institutions 47.08%
Non-Institutions 12.60%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of LIC Housing Finance Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that LIC Housing Finance Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of LIC Housing Finance Ltd.'s performance infers:

LIC Housing Finance Ltd. earnings have grown by 11.5%, whereas share price has depreciated -7.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of LIC Housing Finance Ltd. share prices over the last 10 years. Here is what we found out:

LIC Housing Finance Ltd. share price has depreciated 5.7% annually over the past ten years.

Incorporated in 1989, LIC Housing Finance Ltd is one of the largest Housing Finance Companies in India with a key objective of providing long term finance to individuals for the purchase or construction of house/flat for residential purposes in India. LIC Housing Finance also provides finance on existing property for business/ personal needs and also gives loans to professionals for purchase/construction of Clinics/Nursing Homes/ Diagnostic Centers/ Office

Incorporated in 1989, LIC Housing Finance Ltd is one of the largest Housing Finance Companies in India with a key objective of providing long term finance to individuals for the purchase or construction of house/flat for residential purposes in India. LIC Housing Finance also provides finance on existing property for business/ personal needs and also gives loans to professionals for purchase/construction of Clinics/Nursing Homes/ Diagnostic Centers/ Office Space and also for purchase of equipment. The company also provides finance to builders and developers engaged in the business of construction of houses or flats for residential purpose and to be sold by them.

The company went public in 1994 and since then its stocks are listed and actively traded on the National Stock Exchange (NSE) and Bombay Stock Exchange Limited (BSE). LIC Housing Finance is amongst the pioneers in India ensuring access to housing finance for home ownership. With a strong business foundation, an extensive distribution network and proven industry expertise, LIC HFL is a respected and trusted financial services company.

Business area of the company

LIC Housing Finance is one of the largest Housing Finance Company in India. The main objective of the company is providing long term finance to individuals for purchase or construction of house or flat for residential purpose / repair and renovation of existing flat / houses.

Services & Products offered by the company

Home loan

  • Housing loan
  • Other Home loan products
  • Refinance
  • Special offers

Corporate/ Projects Loans

  • Corporate
  • Builders/ Developers

Other Loans

  • Loan against property
  • Loan against securities
  • Loans to professional
  • Loan against property for companies
  • Loan under rental securitizations

Awards & Accolades

  • Received Data Quality Award by Transunion CIBIL in the Housing Finance Company category at the TU CIBIL Annual Conference 2019.
  • Awarded the ‘Best Housing Finance Company’ at the National Real Estate Congress Leadership & Awards 2019.
  • Listed as ‘The Outperforming Housing Finance Company 2019’ by Outlook Business
  • Awarded Best Private Issuer 2019 on Electronic Bidding Platform by National Stock Exchange
  • Featured in the Top 10 Most Consistent Wealth Creators according to the ‘Motilal Oswal 24th Annual Wealth Creation Study, 2019’.

Milestones:

  • 1989: Incorporated LICHFL; Lending commences from first office in Delhi.
  • 1994: Launched IPO of Rs 120 crore.
  • 2002: Set up Dubai office, marking first overseas presence
  • 2004: Loan portfolio crosses Rs 10,000 crore
  • 2004: $29 million GDR issue; First HFC to do GDR issue oversubscribe
  • 2009: QIP of $135 million oversubscribed 6 times
  • 2015: Loan portfolio crosses Rs 1,00,000 crore
  • 2017: Crossed Rs 1,50,000 crore in assets
  • 2018: Profiled in India’s Leading BFSI Companies 2018 by Dun & Bradstreet
  • 2019: Crossed Rs 2,00,000 crore in assets.
  • 2020: LIC Housing Finance identifies 14 projects for alternative investment fund
  • 2020: LIC Housing Finance launches Project RED to improve efficiencies
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback