LIC Housing Finance (LICHF IN) Buy: Valuations attractive, remain constructive

研报英文原文证据摘录

LIC Housing Finance (LICHF IN) Buy: Valuations attractive, remain constructive

a Buy rating.

52-WEEK PRICE (INR)

Increase EPS estimates by 1.4-3.9% for FY27-28e: We lower our loan growth 680.00

estimates, factoring lower-than-expected disbursements in project loans and non-

555.00

housing loans. This is more than offset by 5-6% cuts to our operating expenses

estimates over FY27-28. We also increase our NIM and fee income estimates for 05/25 11/25 05/26430.00

FY27-28, while our credit cost estimates remain largely unchanged. We expect TargetHigh: 638.25price: 650.00Low: 460.70 Current: 560.40

LICHF to deliver average ROA of 1.8% and ROE of 13% over FY27-29e. We expect Source: LSEG IBES, HSBC estimates

loan growth CAGR of 7.6% over FY26-29e and EPS CAGR of 7.4% over FY26-29e.

Key observations from 4QFY26 results: Abhishek Murarka* Senior Analyst, India Financials

HSBC Securities and Capital Markets (India) Private

◆ Loan disbursements were up (31% q-o-q). The growth was broad based among Limited

individual loans (up 27% q-o-q) and project loans and LAP (up 45% q-o-q each). abhishek.murarka@hsbc.co.in

+91 73049 07567

◆ NIM expanded 11bp q-o-q, driven by lower cost of funds. Rahil Shah*

Analyst, India Financials

◆ Credit cost declined by 9bp q-o-q, attributable to lower slippages. HSBC Securities and Capital Markets (India) Private

Limited

rahil.shah@hsbc.co.in

Highlights from management commentary: LICHF expects 10-12% loan growth for +91 22 6628 3719

FY27. It expects disbursements in retail loans to grow at c15% y-o-y, LAP and LRD to Gaurav Sharma*

grow at c25%, and project loans to grow at 100% y-o-y. April’26 disbursements have Analyst, India Financials

grown c21% y-o-y. Mr. Sandeep Kumar (incoming MD & CEO) will take charge w.e.f Limited

31 August 2026.