The shares of LIC Housing Finance Limited saw a free fall on Wednesday after the stock declined by as much as 10 per cent in the early hours. Till 12.15 the stock was trading at Rs 365 levels.
The stock declined despite the company reporting an increase in net profit in the latest quarter. The housing finance company reported a 23 per cent increase in their net profit which stood at Rs 305 crores in Q2FY23 up from Rs 248 crores in the same period last year.
However, the street was disappointed as they expected the company’s net profit to be Rs 900 crores for the period.
In the quarter under review, their Net Interest Income (NII) declined marginally to Rs 1,163 crore from Rs 1,173 crore in Q2FY22.
Further, the Gross NPA stood at 4.91 per cent which was down sequentially from 4.96 per cent. The Net NPAs were at 2.83 per cent versus 3.1 per cent in Q1FY23.
Yes, Securities has a ‘Buy’ call on LIC Housing Finance with a target price of Rs 475 per share which represents an upside of 30% from the current levels.
LIC Housing Finance Limited (LIC HFL), a subsidiary company of the Life Insurance Corporation of India (LIC) is one of the largest Housing Finance Mortgage loan companies in India.
Life Insurance Corporation of India (LIC) holds a 45.24 percent stake in the company. In addition to that, Foreign Institutional Investors (FIIs) hold a 20.97 percent stake.
The company has a market capitalization of Rs 19,931 Crores and a dividend yield of 2.35% as on November 2nd, 2022.
Written by Anoushka Roy
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