HSBC has upgraded its rating on LIC Housing Finance to ‘Hold’ and increased its target price to Rs 600, citing improved asset quality and attractive valuations. While the company continues to lose market share and faces pricing challenges in an increasingly competitive housing finance sector, HSBC highlights that lower credit costs are offsetting earnings pressures.
The brokerage has upgraded its EPS estimates due to a better-than-expected asset quality outlook, which is providing stability amid operational challenges. Furthermore, LIC Housing Finance’s current valuations have corrected significantly, making the stock more attractive at these levels. HSBC suggests that while growth headwinds remain, the downside risk appears limited in the near term.
