Feb'25 View on LIC Housing Finance Ltd

LIC Housing Finance Limited is a housing finance company registered with National Housing Bank (NHB) and is mainly engaged in financing purchase / construction of residential flats / houses to individuals and project finance to developers, Loan against Property (LAP), Lease Rental Discounting (LRD)for commercial properties as well as purchase of commercial shops/showrooms. After facing continuous resistance at 800 levels, the stock has fallen to 550 levels and taking support and looks to rise back above its previous high once it crosses 600 level on back of the following. • NIM to remain stable at 2.7-2.8% over the medium term. • Borrowing mix stable qoq. • Gross stage-3 loans were down 31% yoy. • Affordable housing to pick up to 10% of book. • LICHF’s new business momentum remains weak, with a soft near-term outlook. • Benign competitive environment and a likely shallow rate-cut cycle support margins. • Elevated real estate prices drive recoveries from bad loans. • LICHF has proposed to step into the lower (affordable) segment.