LIC Housing Finance Results update:
NII grew 41.1% YoY (19.4% QoQ) on back of strong loan growth (34.2% YoY; 10.2% QoQ) along with margin expansion (15 bps YoY; 31 bps QoQ). Net Income was also up 47.4% YoY on back of strong core performance and robust non-interest income (2x Q4FY10; mainly aided by Rs.321 mn profit on sale on investment).
Growth in sanctions & disbursement continued during Q4FY11. Overall sanctions & disbursement grew at healthy pace of 25.3% (YoY) and 34.2% (YoY), respectively. LICHF also bought loan portfolio from LIC (Rs.12.5 bn); adjusting this individual disbursement/loan book grew 37.6% and 34.0%, respectively. Unsurprisingly, developer loan took a breather during Q4FY11 and its disbursement declined 74% YoY.
NIM improved both QoQ and YoY, which is a positive suprise. Asset quality continued to improve further - gross NPA and net NPA now stand at 0.47% (Q4FY10: 0.69%; Q3FY11: 0.67%) and 0.03% (Q4FY10: 0.12%; Q3FY11: 0.18%), respectively.
Long term investors can accumulate on declines, since the stock has performed well in last 3-4 months, with a target price of Rs.260 based on 2.5x its FY12 ABV.
NII grew 41.1% YoY (19.4% QoQ) on back of strong loan growth (34.2% YoY; 10.2% QoQ) along with margin expansion (15 bps YoY; 31 bps QoQ). Net Income was also up 47.4% YoY on back of strong core performance and robust non-interest income (2x Q4FY10; mainly aided by Rs.321 mn profit on sale on investment).
Growth in sanctions & disbursement continued during Q4FY11. Overall sanctions & disbursement grew at healthy pace of 25.3% (YoY) and 34.2% (YoY), respectively. LICHF also bought loan portfolio from LIC (Rs.12.5 bn); adjusting this individual disbursement/loan book grew 37.6% and 34.0%, respectively. Unsurprisingly, developer loan took a breather during Q4FY11 and its disbursement declined 74% YoY.
NIM improved both QoQ and YoY, which is a positive suprise. Asset quality continued to improve further - gross NPA and net NPA now stand at 0.47% (Q4FY10: 0.69%; Q3FY11: 0.67%) and 0.03% (Q4FY10: 0.12%; Q3FY11: 0.18%), respectively.
Long term investors can accumulate on declines, since the stock has performed well in last 3-4 months, with a target price of Rs.260 based on 2.5x its FY12 ABV.
