BSE:500253

Stock Analysis Report

LIC Housing Finance

Executive Summary

LIC Housing Finance Limited, a housing finance company, provides loans for purchase, construction, repair, and renovation of houses/buildings in India.


Snowflake Analysis

Undervalued with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has LIC Housing Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500253's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.5%

500253

-0.7%

IN Mortgage

-0.08%

IN Market


1 Year Return

-22.4%

500253

14.0%

IN Mortgage

9.5%

IN Market

Return vs Industry: 500253 underperformed the Indian Mortgage industry which returned 14% over the past year.

Return vs Market: 500253 underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

500253IndustryMarket
7 Day-11.5%-0.7%-0.08%
30 Day-23.4%-1.5%0.01%
90 Day-13.1%6.2%3.2%
1 Year-21.2%-22.4%15.6%14.0%11.5%9.5%
3 Year-33.1%-35.6%43.1%37.1%23.6%16.7%
5 Year-22.1%-26.4%71.1%59.2%35.5%22.9%

Price Volatility Vs. Market

How volatile is LIC Housing Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LIC Housing Finance undervalued compared to its fair value and its price relative to the market?

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500253 (₹364.55) is trading below our estimate of fair value (₹421.19)

Significantly Below Fair Value: 500253 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 500253 is good value based on its PE Ratio (6.9x) compared to the Mortgage industry average (11.8x).

PE vs Market: 500253 is good value based on its PE Ratio (6.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500253 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 500253 is good value based on its PB Ratio (1.1x) compared to the IN Mortgage industry average (1.1x).


Next Steps

Future Growth

How is LIC Housing Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500253's forecast earnings growth (22.2% per year) is above the savings rate (6.5%).

Earnings vs Market: 500253's earnings (22.2% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500253's revenue (23% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500253's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500253's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has LIC Housing Finance performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500253 has high quality earnings.

Growing Profit Margin: 500253's current net profit margins (53.1%) are lower than last year (54%).


Past Earnings Growth Analysis

Earnings Trend: 500253's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: 500253's earnings growth over the past year (14.9%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: 500253 earnings growth over the past year (14.9%) underperformed the Mortgage industry 16.1%.


Return on Equity

High ROE: 500253's Return on Equity (15.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LIC Housing Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500253 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500253's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: 500253's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 500253 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500253 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 500253 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500253 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 500253 has an appropriate level of bad loans.


Next Steps

Dividend

What is LIC Housing Finance's current dividend yield, its reliability and sustainability?

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500253's dividend (2.08%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500253's dividend (2.08%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 500253's dividends per share have been stable in the past 10 years.

Growing Dividend: 500253's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.3%), 500253's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500253's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Siddhartha Mohanty 0

0.5yrs

Tenure

Mr. Siddhartha Mohanty has been Managing Director and Chief Executive Officer at LIC Housing Finance Ltd. since August 1, 2019. Mr. Mohanty served as Chief Operating Officer at LIC Housing Finance Ltd. sin ...


Leadership Team

NamePositionTenureCompensationOwnership
Nitin Jage
GM of Taxation & Company Secretary0yrs₹3.84mno data
Siddhartha Mohanty
MD, CEO & Director0.5yrsno datano data
Sudipto Sil
Chief Financial Officer0.8yrsno datano data
B Unhelkar
General Manager of Accounts0.8yrsno datano data
Hitesh Talreja
Chief Technology Officer0yrsno datano data
Purti Samant
Chief Manager of Compliance1.1yrsno datano data
Dipak Bardoloi
General Manager of Legal & Audit2.1yrsno datano data
N. Mahesh
Chief Manager of Marketing2.7yrsno datano data
P. Samal
GM of Marketing1.1yrsno datano data
Jaspal Singh
General Manager of HR2.1yrsno datano data

1.1yrs

Average Tenure

Experienced Management: 500253's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Siddhartha Mohanty
MD, CEO & Director0.5yrsno datano data
Jagadish Capoor
Independent Director7.8yrs₹885.00kno data
Pottimutyala Rao
Non Independent Director1.7yrs₹855.00kno data
Vipan Kukreja
Independent Director4.7yrs₹1.31mno data
Savita Param Singh
Non-Executive Independent Director7.8yrs₹155.00kno data
Kashi Khandelwal
Additional Independent Director0.6yrsno datano data
Sanjay Khemani
Non-Executive Non Independent Director0.6yrsno datano data
Dharmendra Bhandari
Independent Director5.5yrs₹665.00k0.00010% 184.0k
Ameet Patel
Independent Director4.5yrs₹390.00kno data
Mangalam Kumar
Chairman0.9yrsno data0.000060% 110.4k

3.1yrs

Average Tenure

63yo

Average Age

Experienced Board: 500253's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LIC Housing Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LIC Housing Finance Limited
  • Ticker: 500253
  • Exchange: BSE
  • Founded: 1989
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹184.000b
  • Shares outstanding: 504.66m
  • Website: https://www.lichousing.com

Location

  • LIC Housing Finance Limited
  • 131 Maker Tower, F Premises
  • 13th Floor
  • Mumbai
  • Maharashtra
  • 400005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500253BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1998
LICHSGFINNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1998
LICHSBDL (Bourse de Luxembourg)SPON GDR REG SLUUSDSep 2004

Biography

LIC Housing Finance Limited, a housing finance company, provides loans for purchase, construction, repair, and renovation of houses/buildings in India. It offers deposits; home loans to resident and non-resident Indians, as well as before and after retirement loans to pensioners; construction finance and term loans for builders/developers; and loans for staff quarters and other lines of credit for corporates. The company also provides loans against properties for companies and individuals; loans against securities; loans under rental securitization; and loans to professionals. In addition, it manages, advises, and acts as a trustee to venture capital and alternative investment funds; develops residential projects for senior citizens; and markets life and general insurance products, mutual funds, and credit cards. The company markets its products through home loan agents, direct sales agents, and customer relation associates. As of March, 31, 2019, it operated through a network of 23 back offices, 273 marketing offices, and 1 customer service point, as well as 9 regional offices in India; and representative offices in Dubai and Kuwait. The company was founded in 1989 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 12:46
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.