LIC Housing Finance Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹36,029 crore, a PE ratio of 7.61, a debt-to-equity ratio of 8.03 and a return on equity (ROE) of 16.2%. These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
LIC Housing Finance Ltd Overview
LIC Housing Finance Ltd is one of India’s leading housing finance companies, established in 1989. It offers a range of financial products for homebuyers, builders and developers. With a strong presence across India, the company aims to promote affordable housing and customer satisfaction.
The company has a market capitalization of ₹36,029 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 20.8% below its 52-week high and 51.6% above its 52-week low.
LIC Housing Finance Ltd Financial Results
LIC Housing Finance’s financial results for FY24 show a total income of ₹27,278 crore, up from ₹20,005 crore in FY22. Net profit reached ₹4,896 crore, reflecting significant growth over the two years.
- Revenue Trend: Total income increased from ₹20,005 crore in FY22 to ₹22,728 crore in FY23, and further to ₹27,278 crore in FY24. This consistent growth indicates a strong upward trend in revenue generation.
- Equity and Liabilities: Equity capital stood at ₹110 Crores in FY24, with reserves increasing to ₹31,367 Crores. Total liabilities increased to ₹291,334 Crores in FY24 from ₹278,559 Crores in FY23, indicating a growing financial base.
- Profitability: Profit before tax surged from ₹2,955 crore in FY22 to ₹3,743 crore in FY23, reaching ₹6,201 crore in FY24. This highlights effective cost management and improved operational efficiency.
- Earnings Per Share (EPS): EPS increased significantly from ₹43.12 in FY22 to ₹52.56 in FY23, further climbing to ₹86.53 in FY24. This showcases strong profitability and substantial value creation for shareholders.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) slightly increased to 16.2% in FY24 from 16% in FY23, suggesting a modest improvement in returns on shareholders’ equity.
- Financial Position: LIC Housing Finance’s financial position remains robust, with total expenses rising from ₹15,062 crore in FY22 to ₹17,042 crore in FY23 and further to ₹19,433 crore in FY24, indicating efficient management of operational costs amid growing income.
LIC Housing Finance Ltd Financial Analysis
| FY24 | FY23 | FY22 | |
| Total Income | 27,278 | 22,728 | 20,005 |
| Total Expenses | 19,433 | 17,042 | 15,062 |
| Pre-Provisioning Operating Profit | 7,844 | 5,686 | 4,943 |
| PPOP Margin (%) | 28.76 | 25.02 | 24.71 |
| Provisions and Contingencies | 1,644 | 1,943 | 1,988 |
| Profit Before Tax | 6,201 | 3,743 | 2,955 |
| Tax % | 21.04 | 17.89 | 16.96 |
| Net Profit | 4,896 | 3,074 | 2,454 |
| EPS | 86.53 | 52.56 | 43.12 |
| Net Interest Income | 8,892 | 6,579 | 5,823 |
| NIM (%) | 3.17 | 2.5 | 2.41 |
| Dividend Payout % | 10.4 | 16.17 | 19.71 |
All values in ₹ Crores
LIC Housing Finance Limited Company Metrics
LIC Housing Finance Ltd has a market capitalization of ₹36,029 crore, with a current stock price of ₹655 and an EPS of ₹86.3, reflecting strong financial performance.
- Market Cap: With a market cap of ₹36,029 crore, LIC Housing Finance Ltd is recognized as a significant player in the housing finance sector.
- Book Value: The book value stands at ₹572, indicating the company’s solid net asset position, which supports shareholder equity and investment value.
- Face Value: LIC Housing Finance Ltd has a face value of ₹2.00 per share, representing the nominal value of its equity shares.
- Turnover: The asset turnover ratio is 0.10, suggesting efficient use of assets to generate revenue, although there is room for improvement.
- PE Ratio: The stock P/E ratio of 7.61 indicates that investors are willing to pay ₹7.61 for every ₹1 of earnings, reflecting reasonable valuation.
- Debt: Total debt amounts to ₹2,52,618 crore, indicating a significant leverage position, which is essential for funding housing finance activities.
- ROE: The return on equity (ROE) is 16.2%, showcasing the company’s effectiveness in generating profits from shareholders’ investments.
- EBITDA Margin: The operating profit margin (OPM) of 90.7% highlights strong operational efficiency, indicating a healthy margin from core business activities.
- Dividend Yield: The dividend yield is 1.36%, offering shareholders a modest return on their investment through regular dividend payouts.
LIC Housing Finance Ltd Stock Performance
The table indicates significant returns on investment, with 5-year returns at 10%, 3-year returns at 19%, and impressive 1-year returns at 48%, reflecting strong performance over varying periods.
| Period | Return on Investment (%) |
| 5 Years | 10% |
| 3 Years | 19% |
| 1 Year | 48% |
Examples:
- An investor invested ₹1,00,000 and received ₹1,10,000 in five years.
- An investor put in ₹1,00,000 and gained ₹1,19,000 in three years.
- An investor contributed ₹1,00,000 and earned ₹1,48,000 in one year.
LIC Housing Finance Limited Peer Comparison
LIC Housing Finance, with a market cap of ₹36,029.18 crore, competes with peers such as PNB Housing, Aadhar Housing Finance, and Aptus Value Housing. These companies show varying growth rates in returns and differ in overall valuations and performance.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3M return % | 1Y return % |
| 1 | H U D C O | 230 | 46043.69 | 1.67 | -14.32 | 226.73 |
| 2 | LIC Housing Fin. | 655 | 36029.18 | 0.53 | -7.81 | 47.7 |
| 3 | PNB Housing | 1034.7 | 26877.41 | 2.33 | 37.22 | 59.39 |
| 4 | Aadhar Hsg. Fin. | 462 | 19853.94 | 0.77 | 15.48 | |
| 5 | Aptus Value Hou. | 343.35 | 17144.92 | 0.66 | 0.18 | 23.19 |
| 6 | AAVAS Financiers | 1824.95 | 14442.96 | 1.25 | -4.97 | 9.01 |
LIC Housing Finance Limited Shareholding Pattern
The shareholding pattern of LIC Housing Finance Ltd shows stability among major shareholders. Promoters hold 45.24%, while foreign institutional investors (FIIs) increased their stake to 23.19%. Domestic institutional investors (DIIs) account for 21.22%, with retail and others at 10.36%.
| Jun 2024 | Mar 2024 | Dec 2023 | |
| Promoters | 45.24 | 45.24 | 45.24 |
| FII | 23.19 | 22.59 | 21.91 |
| DII | 21.22 | 21.99 | 21.76 |
| Retail & others | 10.36 | 10.18 | 11.09 |
All values in %
LIC Housing Finance Ltd History
LIC Housing Finance Ltd (LICHFL) was established in 1989 with the aim of providing long-term financial assistance for residential properties in India. It has grown to become one of the largest housing finance companies, serving millions of homeowners across the nation.
In 1994, LICHFL went public, listing its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This milestone marked its commitment to transparency and shareholder value, enabling further expansion and enhanced service offerings to a diverse customer base.
Over the years, LICHFL has evolved to address the changing needs of homebuyers, introducing a range of customized loan products. With a strong focus on affordability and customer satisfaction, the company has built a reputation as a trusted partner in homeownership, serving over 30 lakh families.
How To Invest In LIC Housing Finance Limited Share?
Investing in LIC Housing Finance shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for LIC Housing Finance shares and place your buy order
LIC Housing Finance Limited Fundamental Analysis FAQs
LIC Housing Finance Ltd’s fundamental analysis reveals a market capitalization of ₹36,029 crore, a PE ratio of 7.61, a debt-to-equity ratio of 8.03 and a return on equity (ROE) of 16.2%, reflecting its financial stability and effective debt management.
LIC Housing Finance Ltd has a market capitalization of ₹36,029 crore, representing the total market value of its outstanding shares, highlighting its significant role in the Indian oil drilling and exploration sector.
LIC Housing Finance Limited is one of India’s largest housing finance companies, established in 1989. It provides long-term financial assistance for purchasing or constructing residential properties, catering to individuals and builders, while promoting affordable housing solutions across the country.
LIC Housing Finance Limited is primarily owned by Life Insurance Corporation of India (LIC), which holds a significant stake in the company. Other shareholders include institutional investors and the public, as the company is publicly traded on stock exchanges.
The main shareholders of LIC Housing Finance Ltd include the Life Insurance Corporation of India (LIC), foreign institutional investors (FIIs), domestic mutual funds and retail investors. LIC is the largest shareholder, significantly influencing the company’s ownership structure.
LIC Housing Finance Limited operates in the financial services industry, specifically within the housing finance sector. It provides long-term loans for purchasing and constructing residential properties, catering to individuals, builders and developers, thus facilitating homeownership in India.
To invest in LIC Housing Finance Ltd shares, open a demat and trading account with Alice Blue. Research the company’s financials, set your investment goals and place buy orders through the trading platform when the stock is listed.
Determining if LIC Housing Finance is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects and industry comparisons. With a PE ratio of 7.61, LIC Housing Finance might be fairly valued, reflecting market expectations and moderate growth potential.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
