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This brokerage firm advised to buy LIC Housing Finance, but reduced the target price – Buy Lic Housing Finance at the target of Rs 650 Says Brokeage Firm Prabhudas Lilladher

According to the Brokerage firm Prabhudas Lilladher, LIC Housing Finance has challenges. Although the risk associated with asset quality has decreased broadly, the brokerage firm has upgraded to ‘hold’ to the company’s rating.

The last quarter was mixed for LIC Housing Finance, but the asset quality was better. Net Interest Income/NET Interest Margin remained on the lines of estimates and AUM growth also remained on the lines of estimates. Loan payment was also low during the relevant period.

Due to the problem in the markets of Bengaluru and Hyderabad, the credit flow was also affected. The company hopes that the volume will become normal in these markets in the fourth quarter of FY 2025. The objective of LIC Housing Finance (LICHF) in FY 2026 is to achieve double digit growth.

The brokerage firm is expected to be 7.5 % AUM CAGR in FY 25-27. The asset quality of the company has been constantly surprised us.

Due to a decrease in provision for FY 2025/26/27, the data of Profit Offer Tax (PAT) has also been upgraded during FY 2027 to FY 2027 due to a decrease in provision. Apart from this, we have reduced the target price from Rs 675 to Rs 650. Also, the company’s rating has been upgraded to ‘bye’.

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