LIC Housing Finance Limited is one of the leading names in the housing finance sector in India. It is known for its comprehensive portfolio of home loan products for the purpose of construction/purchase/renovation of houses/flats.
The market cap of LIC Housing Finance Limited as of June 7, 2018, is a little over Rs.24,700 crore.
Company’s Wealth and Recent Performance
- For the fourth quarter of the fiscal year 2017-18, the total income of the company grew by 7% to the same quarter previous year to Rs.3,934 crore. Revenue from operations recorded a similar growth in the quarter, growing to Rs.3,643 crore.
- The net interest income of the company reported a marginal decline to Rs.1,004 crore. On the other hand, LIC Housing Finance Limited’s net profit before tax grew by 4% over the same period previous year to Rs.838.74 crore.
- Considering the company’s performance over the entire FY18, the total income stood at Rs.15,073 crore in contrast to Rs.14,080 crore over the previous year. The revenue from operations also reported a similar growth over the year with the final figure standing at Rs.14,960 crore.
- The net profit after tax for the year stood at Rs.1,989.59 crore - an increase of roughly 3% over the previous year. The net interest income for the year that ended on March 31, 2018, also grew marginally to Rs.3,701 crore from Rs.3,645 crore in FY17.
- The individual loan portfolio also recorded an impressive growth of 14% with the final tally standing at Rs.1,58,270 crore as on March 31, 2018. A similar increase was also observed in the developer loan portfolio segment too.
- Considering the total count of gross Non-Performing Assets (NPAs) for the company, it stood at 0.78% on developer loans and 0.42% on individual loans. As for the net NPAs, it was reported to be at 0.43%.
LIC Housing Finance Limited Stock Trends in 2018
- On January 1, 2018, the stock price of LIC Housing Finance Limited was Rs.565.50 on NSE. The price remained around this level for the greater part of the month. Towards the end of the month, the company released its Q3 FY18 performance reports. Despite reporting excellent figures, the stock price collapsed owing to turbulence in the international markets.
- The LIC Housing Finance Limited share price at the start of February was Rs.527. Throughout the month, the price remained below the Rs.550 mark. In the month of March, the price plummeted further to enter the Rs.400 territory. However, this fall was soon followed by a bull-run during which the LIC Housing stock price rose to recover its previous losses.
- The LIC Housing Finance Limited stocks commenced the month of April at Rs.537. The price didn’t vary substantially in the month as investors patiently awaited the results of the Q4 FY18. However, after the results were released, the share price went on a downward trajectory.
- The price kept falling throughout the month of May. The LIC Housing Finance Limited stock price went down from Rs.548 to Rs.498 in a little over two weeks. It is worth noting that around the same time, BSE SENSEX rose by roughly 350 points. The closing price at the end of May was Rs.475.15 on NSE. The closing price of LIC Housing shares as of June 6, 2018, is Rs.486.30 on NSE.
LIC Housing Finance Limited Stock Trends in 2016 and 2017
- LIC Housing stocks commenced the year 2016 at the Rs.500 mark. The stocks tried to stabilise at these levels but ended up going on a downward trajectory. By February, the share price of LIC Housing Limited had entered the Rs.400 territory. In March, the shares rose steadily to recoup its previous losses. The closing price at the end of March 2016 was Rs.493.15.
- The month of April didn’t bring any good news for the investors. The price changed marginally over the course of the month without undergoing any major fluctuations. This bearish behaviour was observed for the most of May as well. However, in June, the stock price of LIC Housing Finance Limited rose to reach its previous levels.
- Interestingly, by July, the shares had once again entered the Rs.500 territory. A final dividend of 275% was announced in August which kept the investors’ sentiments high. The LIC Housing Finance shares made handsome gains in this period. As a result, the closing price at the end of September 2016 was Rs.578.80.
- The share price rose slightly in October and for a brief period, the stocks entered the Rs.600 territory. The closing price at the end of the month was Rs.582. However, post demonetisation in November, the stocks shed their previously made gains and the price suffered heavily. The LIC Housing Finance Limited stocks finished the month of November at Rs.564. Prices didn’t vary significantly in December and the closing price at the end of the year was Rs.559.
- 2017 started off well for the investors. As the BSE SENSEX rose steadily, so did the LIC Housing Finance share price. The stocks gained around Rs.30 in the month of January to end the month at Rs.559.50. The prices rose further through the months of February and March and they soon managed to cross the Rs.600 mark.
- The stock price of LIC Housing Finance Limited continued to soar through the months of April and May. They gained more than 10% in this period with the price eventually entering the Rs.700 territory. In fact, the closing price on May 30, 2017, was Rs.711.85 on NSE. The stocks managed to continue this bull run in the month of June as well with the share price reaching its 52 week high at Rs.794.
- After mid-June, the stocks commenced a bear-run. The shares went on a downward path and they eventually shed their recently made gains. The closing price at the end of July was Rs.690.45. A final dividend of 310% was announced in August but that didn’t do much to restore investors confidence. The price continued to fall through the month, although, in early September, it did recover slightly.
- The same behaviour was seen in the final quarter of the year as well. The stocks tried to recover in early October but by the end of the month, they were close to entering into the Rs.500 territory again. Things did not vary much in November as the share price of LIC Housing Finance Limited continued to flicker at levels around Rs.598. The prices collapsed further in December only to finish the year at Rs.563.50.
Should you invest in LIC Housing Finance Limited?
- LIC Housing Finance Limited is one of the country’s housing finance companies. Its fundamentals are strong and over the course of last fiscal year, the company has performed exceptionally well. Its individual loan portfolio grew by 14% while developer loan portfolio grew by more than 25%.
- Even its total gross NPAs in the individual segment stood at a mere 0.42% which, in comparison to many private banks, is far superior. This is a sign of good management and one can expect this company to progress along the same lines.
- In terms of net profit In the housing finance sector, LIC Housing Finance Limited is at the third place, trailing behind HDFC and Indiabulls Housing Limited. Furthermore, being a part of the LIC Group, it is well-known and easily scalable.
- The Government of India launched the Pradhan Mantri Awas Yojana Scheme in 2015 which aims at providing affordable housing to the urban poor of the country by the year 2022. It does so by offering subsidies on home loan interest rates among other things. As more and more people look to capitalise on this, LIC Housing Finance Limited is placed strategically to benefit from the growing demand for home loans.
- From a long-term perspective, buying LIC Housing Finance shares is a good idea. However, it is strongly recommended that you perform your own research before investing. Alternately, you can also look into mutual funds with holdings in LIC Housing Finance.
LIC Housing Finance Limited is one of the largest housing finance companies in India. It is primarily known for providing long-term home loans to individuals for the purpose of purchase/construction/renovation of flats and houses. Apart from this, it also provides financial solutions to builders and developers who are occupied in the business of construction. Users can also avail loans on existing property to meet their personal/business requirements.
History of the Company
LIC Housing Finance Limited was incorporated on June 19, 1989, under the Companies Act 1956. It was promoted by the LIC India. The company went public in the year 1994 and issued its Global Depository Receipts (GDRs) 2004. Over the years, it broadened its portfolio by offering new home loan products and schemes.
Management of the Company
Mr. Vijay Kumar Sharma - Chairman
Mr. V K Sharma became the Chairman of the Life Insurance Corporation of India in December 2016. Prior to this, he served as the Managing Director and Chief Executive Officer of the LIC Housing Finance Limited (LICHFL). He has played an instrumental role in leading LICHFL through volatile markets and severe macroeconomic conditions while ensuring that the company’s momentum does not suffer. He is known for his focus on leadership and talent development, among other things. Mr. Sharma joined the company back in 1981 as a Direct Recruit Officer and holds a postgraduate degree in Botany from Patna University.
Ms. Usha Sangwan - Director
Ms. Usha too joined the LIC Group back in 1981 as a Direct Recruit Officer. A postgraduate in Economics, she is the first female Managing Director of LIC India. In addition to serving as the whole time director on the board of LIC India, she is also a board member of other companies like General Insurance Corporation of India, LIC Housing Finance Limited, BSE Limited, Axis Bank, and many more. She has worked in all the major core areas of finance such as stock exchange, housing finance, banking, mutual funds, insurance, investments, and risk management. She has won numerous accolades, the most notable of which is her inclusion in the Forbes List of 50 most powerful Businesswomen in Asia.
Mr. Vinay Shah - Managing Director & CEO
Mr. Shah became the MD & CEO of LICHFL in April 2017. Prior to being appointed to this post, Mr. Shah served as the Executive Director - Marketing and Product Development of LIC India. It was under his leadership that the company, for the first time in its history, achieved its first premium income target for the year 2016-17 February 2017 itself. He also spearheaded the launch of 9 individual products during his time at the Marketing and Product Development department. He also improved the agency recruitment rate to 53.40% during his tenure.
LIC Housing Finance Limited Listings in NSE, BSE, and Indices
The stocks of LIC Housing Finance Limited are available for trading on the two major stock exchanges of India - The National Stock Exchange Limited and The Stock Exchange, Mumbai. Its equity shares are also available for international investors on the Luxembourg Stock Exchange, also known as Bourse de Luxembourg.
The respective codes for the same are as follows:
- NSE Code - LICHSGFIN-EQ
- BSE Code - 500253
- ISIN - INE115A01026
- Sector - Finance, Housing
Even though the company is a prominent player in the housing finance sector, it isn’t a part of the two benchmark stock market indices - BSE SENSEX and NIFTY 50. However, it does comprise the following indices:
- NIFTY 100
- NIFTY 50
- S&P BSE Finance
- S&P BSE MidCap
- S&P BSE SENSEX Next 50
- S&P BSE 100
- S&P BSE 200
- S&P BSE Carbonex
LIC Housing Finance Limited
Maker Tower-F, 13th Floor,
Mumbai - 400005
Phone number: +91-2222178600
Email ID: email@example.com
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