NSEI:LICHSGFIN

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

Fundamentals

Solid track record established dividend payer.


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: LICHSGFIN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

LICHSGFIN

-0.1%

IN Mortgage

-0.3%

IN Market


1 Year Return

-8.4%

LICHSGFIN

5.2%

IN Mortgage

3.8%

IN Market

Return vs Industry: LICHSGFIN underperformed the Indian Mortgage industry which returned 5.2% over the past year.

Return vs Market: LICHSGFIN underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

LICHSGFINIndustryMarket
7 Day-5.5%-0.1%-0.3%
30 Day7.9%7.8%2.7%
90 Day-13.2%0.9%7.6%
1 Year-6.9%-8.4%6.5%5.2%5.9%3.8%
3 Year-16.9%-19.9%53.0%47.3%35.4%28.4%
5 Year6.0%0.1%91.0%78.6%38.1%25.2%

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

Valuation

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

7.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LICHSGFIN (₹415.3) is trading above our estimate of fair value (₹356.5)

Significantly Below Fair Value: LICHSGFIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LICHSGFIN is good value based on its PE Ratio (7.8x) compared to the Mortgage industry average (10.1x).

PE vs Market: LICHSGFIN is good value based on its PE Ratio (7.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: LICHSGFIN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LICHSGFIN is overvalued based on its PB Ratio (1.2x) compared to the IN Mortgage industry average (1.2x).


Next Steps

Future Growth

How is LIC Housing Finance forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LICHSGFIN's forecast earnings growth (14.7% per year) is above the savings rate (7.6%).

Earnings vs Market: LICHSGFIN's earnings (14.7% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: LICHSGFIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LICHSGFIN's revenue (11.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: LICHSGFIN's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LICHSGFIN's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

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

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LICHSGFIN has high quality earnings.

Growing Profit Margin: LICHSGFIN's current net profit margins (54.9%) are higher than last year (53.9%).


Past Earnings Growth Analysis

Earnings Trend: LICHSGFIN's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: LICHSGFIN's earnings growth over the past year (20.7%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: LICHSGFIN earnings growth over the past year (20.7%) exceeded the Mortgage industry 17.3%.


Return on Equity

High ROE: LICHSGFIN'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: LICHSGFIN has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.4%industryaverage1.4%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: LICHSGFIN's dividend (1.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: LICHSGFIN's dividend (1.83%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: LICHSGFIN's dividends in 3 years are forecast to be thoroughly covered by earnings (13.2% payout ratio).


Next Steps

Management

What is the CEO of LIC Housing Finance's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Siddhartha Mohanty 0

0.3yrs

Tenure

0

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 ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: LICHSGFIN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: LICHSGFIN's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Nitin Jage

    GM of Taxation & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹3.84m
  • N. Mahesh

    Chief Manager of Marketing

    • Tenure: 2.4yrs
  • Purti Samant

    Chief Manager of Compliance

    • Tenure: 0.8yrs
  • Sudipto Sil

    Chief Financial Officer

    • Tenure: 0.5yrs
  • P. Samal

    GM of Marketing

    • Tenure: 0.8yrs
  • Jaspal Singh

    General Manager of HR

    • Tenure: 1.8yrs
  • Dipak Bardoloi

    General Manager of Legal & Audit

    • Tenure: 1.8yrs
  • Siddhartha Mohanty

    MD, CEO & Director

    • Tenure: 0.3yrs
  • B Unhelkar

    General Manager of Accounts

    • Tenure: 0.5yrs
  • Hitesh Talreja

    Chief Technology Officer

    • Tenure: 0yrs

Board Members

  • Jagdish Capoor (80yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹885.00k
  • Pottimutyala Rao (63yo)

    Non Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹855.00k
  • Vipan Kukreja (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹1.31m
  • Savita Param Singh (53yo)

    Non-Executive Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹155.00k
  • Kashi Khandelwal (68yo)

    Additional Independent Director

    • Tenure: 0.3yrs
  • Sanjay Khemani (50yo)

    Non-Executive Non Independent Director

    • Tenure: 0.3yrs
  • Dharmendra Bhandari (62yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹665.00k
  • Ameet Patel

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹390.00k
  • Mangalam Kumar

    Chairman

    • Tenure: 0.7yrs
  • Siddhartha Mohanty

    MD, CEO & Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: LIC Housing Finance Limited
  • Ticker: LICHSGFIN
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹209.587b
  • 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)GDR-REPR 2 ORD INR2 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-re ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:44
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.