LIC Housing Finance shares today: Shares of LIC Housing Finance Ltd edged higher on Monday morning. The stock was trading at Rs 583.80, up Rs 13.55 or 2.38 per cent, as of 9:58 AM.
The company reported a mixed set of numbers for the April–June quarter. While headline profit and revenues showed moderate year-on-year growth, bottom-line performance came in slightly below expectations due to increased credit provisioning and a weaker net interest margin (NIM).
Despite Monday’s early gains, LIC Housing Finance has underperformed broader indices so far this year. The stock is down around 5 per cent year-to-date, while the Nifty 50 has risen roughly 3 per cent over the same period.
Brokerage views on LIC Housing Finance
Global brokerage Morgan Stanley has reiterated its ‘Underweight’ stance on the stock, maintaining a target price of Rs 480 — well below the current market level. The firm said pre-provision operating profit (PPOP) was broadly in line with forecasts, but net profit fell short, weighed down by higher credit costs. NIMs were also softer, driven by lower calculated yields.
“The stock may appear relatively defensive compared to peers in the NBFC space, especially given asset quality improvements. But that support may not be sustainable in the medium term, especially in a rate-cutting environment,” the brokerage noted in its commentary.
LIC Housing finance Q1 results highlights
For the quarter ended June 30, LIC Housing Finance posted a 5 per cent year-on-year rise in net profit, coming in at Rs 1,360 crore, up from Rs 1,300 crore a year earlier. Total income increased to Rs 7,233 crore, compared to Rs 6,784 crore in the same period last year.
On the expense side, the company saw a jump to Rs 5,534 crore, up from Rs 5,155 crore a year ago. One bright spot was asset quality, which showed a steady improvement. Gross non-performing assets (GNPA) came down to 2.62 per cent from 3.29 per cent as of June 2024.
Net NPA also improved, dropping to 1.3 per cent versus 1.68 per cent a year ago. Disbursements for the quarter stood at Rs 13,116 crore, up just over 2 per cent from Rs 12,915 crore in Q1FY25. Home loan disbursements saw a 3 per cent increase to Rs 11,247 crore. Project loans, however, saw a sharp decline, falling to Rs 156 crore from Rs 521 crore in the previous year.
