Shares of LIC Housing Finance are in focus after CLSA maintained an Outperform rating on the stock while cutting its target price to ₹600, citing a steady quarterly performance alongside challenges on the loan growth front.
CLSA said the company reported a net profit of ₹13.8 billion, slightly ahead of expectations, supported by better net interest income and controlled credit costs. The brokerage noted that net interest margin improved to around 2.7% during the quarter and is expected to remain near current levels.
However, CLSA highlighted that loan growth remained weak at 1% quarter-on-quarter and 5% year-on-year, as the company continues to face strong competition from banks in the retail mortgage segment.
The brokerage added that management is taking steps to revive growth, including hiring a consultant, reshaping its marketing strategy, and increasing focus on the self-employed and affordable housing segments.
At the current market price of ₹497.45, CLSA’s target price of ₹600 implies an upside of around 21%.
Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.
