18 April 2016
4QFY16Results Update | Sector: Financials
LIC Housing Finance
LIC Housing Finance
BSE SENSEX
25,816
Bloomberg
Equity Shares (m)
M.Cap. INR b /USD b
52-Week Range (INR)
1, 6, 12 Rel.Per (%)
Avg Val (INR m)
Free float (%)
S&P CNX
7,915
LICHF IN
505.0
235.8/3.5
526 / 389
1/8/20
1141
59.7
CMP: INR485
TP: INR582 (20%)
Buy
Financials & Valuation (INR Billion)
Y/E March 2016E 2017E 2018E
NII
PPP
Adj. PAT
EPS (INR)
EPS Gr. (%)
RoAA (%)
RoE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
D. Yield (%)
14.9
2.7
1.3
12.1
2.3
1.6
10.0
1.9
1.8
30.0
27.7
16.9
33.5
25.8
1.5
19.9
20.3
36.1
33.5
21.2
42.0
25.4
1.5
21.2
20.3
40.7
37.6
24.0
47.5
12.9
253.8
1.5
20.2
20.3
BV/Sh (INR) 181.9 215.7
LIC Housing Finance’s (LICHF) 4QFY16 net profit grew 18% YoY to INR4.48b (7%
miss). While the spreads and margins improved by 33/23bps YoY; lower than
expected loan growth of 15.5% (led by higher repayments) coupled with higher
operating expenses led to PAT miss.
Loan growth of 15.5% YoY (+6.6% QoQ) was weak led by lower retail growth of
10.4% YoY and higher repayments rate, which inched to 11.9% v/s 8.4% in FY15.
Growth in individual segment was largely driven by LAP, which grew +100% YoY
and 47%QoQ (fastest in last 8 quarters) LAP’s share has grown 240bp sequentially
to 8.8% of the loan book. Developer loans grew at a healthy rate of 26%, and its
share in overall loans increased to 2.75% v/s 2.53% a year ago. Overall
disbursements grew 33% YoY and 57% QoQ.
Calc. book spreads improved 33bp YoY to 1.79% whereas incremental spreads
were at 2.1% v/s 1.74% in FY15, margins stood at 2.71% up 24bp YoY. Strong
growth in high yielding LAP segment coupled with decline in cost of funds
continues to drive spreads improvement.
Higher operating expenses were on account of higher commissions paid for
sourcing LAP loans. Asset quality remained stable YoY with GNPAs/NNPAs at
0.45%/0.2%.
Valuation and view:
Mortgages market remains in hyper competitive mode which
is affecting growth, however, on back of continuous decline in wholesale rates
and stable yields (supported by strong growth in high yielding LAP) LICHF is able
to report superior spread and margins; resulting strong earnings growth. While
impressive performance on spreads and margin it remain key monitorables. We
largely maintain our estimates and may revise them post the earrings call. The
stock is trading at 1.9x FY18 BV.
Maintain Buy valuing stock at 2.25x FY18 P/B.
Sunesh Khanna
(Sunesh.Khanna@MotilalOswal.com);+91 22 3982 5521
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com);
+91 22 3982 5415
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

LIC Housing Finance
Exhibit 1: Operating performance v/s our estimates and reasons for deviation (INRm)
Y/e March
Interest Income
Interest Expenses
Net Interest Income
YoY Gr. (%)
Fees and other income
Net Income
YoY Gr. (%)
Operating Expenses
Operating Profit
YoY Gr. (%)
Provisions and Cont.
Profit before Tax
Tax Provisions
Net Profit
YoY Gr. (%)
4QFY16A
32,057
23,843
8,214
26.4
683
8,897
25.3
1,578
7,319
27.0
376
6,943
2,463
4,480
18.5
3QFY16E
33,391
24,612
8,779
35.1
632
9,411
32.5
1,468
7,943
37.8
562
7,381
2,561
4,820
27.5
8
-5
7
-8
-33
-6
-4
-7
Var (%)
-4
-3
-6
Comments
NIMs of 271bp; up 23bp YoY & 13bp QoQ
Higher investment income
Higher other expenses- due to higher commission payout
Stable asset quality
Tax Rate 35.5%
Lower growth and higher expenses led to PAT miss
Source: Company, MOSL
Retail growth slows down; Loan mix skewed towards LAP
Loan growth of 15.5% YoY (+6.6% QoQ) was lower than our estimate; Individual
loans grew 15.0% YoY and 2.9% QoQ to INR1.21t; however ex LAP the retail
home loan grew 10.4% YoY. The growth in individual segment was largely
driven by loan against property,which grew +100% YoY and 47%QoQ (fastest in
last 8 quarters).
LAP book’s share has grown 240bp sequentially to 8.8% v/s 6.4% in 3QFY16 and
4.6% in 4QFY15. Developer loans grew at a healthy rate of 26%, continuing the
momentum from the last quarter, and its share in overall loans increased to
2.75% v/s 2.53% a year ago.
Overall disbursements grew 33% YoY and 57% QoQto INR132b and individual
disbursement grew 32% YoY to INR125.7b; largely driven by LAP.
Margins improve on lower CoF; higher commissions led to higher opex
Net interest income stood at INR8.2b (6% miss); While the spreads and margins
improved by 33/23bps YoY; lower than expected loan growth of 15.5% -led by
higher repayments led to NII miss.
Calc. book spreads improved 33bp YoY to 1.79% whereas incremental spreads
were at 2.1% v/s 1.74% in FY15, whereas margins stood at 2.71% up 24bp YoY.
Strong growth in high yielding LAP segment coupled with decline in cost of funds
continues to drive spreads improvement.
Prepayments rate still remains elevated (11.9% of the opening book v/s 8.4% in
FY15) signifying LICHF losing some business to competition and exerting
pressure on the company to reduce lending rates in-line with banks and other
HFCs.
Higher opex was driven by commissions paid for sourcing business (largely LAP)
LAP loans provide higher yields and companies have to pay higher commissions
to source the same. As share of LAP loans increased 240bps during the quarter.
Asset quality remained stable YoY with GNPAs/NNPAs at 0.45%/0.2%. In
absolute terms GNPLs declined 17% QoQ led by 33% reduction in retail NPLs.
2
18 April 2016

LIC Housing Finance
Other highlights
a) LTV and installment to net income ratio on incremental sanctions stood at
46.7%/33.25%. c) Customer profile constitutes 84% salaried borrowers
(StableQoQ) and 16% self-employed borrowers. d) 47% of business originates
from the outskirts of top 7 cities. e) Incremental average ticket size is INR2.1m
(FY15: 1.9m). f) 47% of the outstanding portfolio is on floating rate, increased
from 40% in the last quarter, indicating customer preference to opt for floating
rate loans in a declining interest rate scenario and LTV on incremental sanctions
is at 47%.
Valuation and view
Mortgages markets are in hyper competitive mode which is leading to
moderation in retail loan segment. However, LICHF earnings growth remains
healthy at 21.8% for FY16. The strong growth is on back of continuous decline in
wholesale rates (leading to decline in CoF) and largely stable yields -supported
by +100% growth in high yielding loan against property segment.
However, sharp decline in retail loan growth (at 10% YoY) and continuously
increasing repayment rates (at 11.9% v/s 8.4% in FY15) is worrisome. Lower
retail loan growth and such sharp surge in pre-payments are indicating immense
competitive pressure on LIHF and most probably it is losing some business to
competition in its core segment.
While earnings trajectory is likely to remain healthy supported by declining
funding costs and strong growth in high yielding LAP segment; such strong
growth in this segment could be a potential risk going ahead.
We largely maintain our earnings estimates for FY17/18 respectively. We expect
LICHF to post earning CAGR of 22.3% over FY16-18E and RoA’s/RoE’s of
1.55%/21%. Maintain
Buy
with a target price of INR582 (2.25x FY18E BV).We
may revise earnings estimates post earnings conference call.
Exhibit 2: We largely maintain our earnings estimates
INR B
NII
Other Income
Net Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Adj. PAT*
Spreads (%)
RoAA (%)
RoAE (%)
Old Est.
FY17
FY18
36.1
42.2
2.7
3.2
38.9
45.4
5.4
6.3
33.5
39.1
2.0
0.9
31.5
38.2
11.0
13.0
20.5
25.2
20.3
25.0
1.82
1.87
1.5
1.5
20.3
21.2
Revised Est.
FY17
FY18
36.2
41.6
2.8
3.3
39.0
44.9
5.5
6.4
33.5
38.5
2.0
0.9
31.5
37.5
11.0
12.8
20.5
24.8
20.3
24.6
1.82
1.88
1.5
1.5
20.4
20.9
% Change
FY17
FY18
0.2
-1.5
0.3
2.2
0.1
0.1
0.1
0.1
0.1
-1.2
1.9
-1.7
-1.8
-1.8
-1.8
-1.8
Source: MOSL
18 April 2016
3

LIC Housing Finance
Exhibit 3: Quarterly Snapshot
2Q
Profit and Loss (INR m)
Interest Income
- Individual
- Projects
Interest Expenses
Net Interest Income
Fees and others
Net Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
PAT
Asset Quality
GNPA (INR m)
NNPA (INR m)
Gross NPAs (%)
- Individual
- Projects
Net NPAs (%)
PCR (Calculated, %)
22,237
21,420
817
17,703
4,534
787
5,321
744
280
464
4,577
341
4,237
1,136
3,101
FY14
3Q
23,120
22,302
818
18,543
4,577
644
5,221
733
240
492
4,488
-75
4,563
1,297
3,266
FY15
4Q
24,074
23,238
837
18,743
5,331
705
6,037
1,043
255
788
4,993
-223
5,216
1,516
3,700
1Q
2Q
3Q
4Q
1Q
2Q
FY16
3Q
4Q
Variation (%)
QoQ
YoY
3
3
1
1
10
24
11
30
-9
51
8
9
7
8
7
14
15
11
11
26
13
25
18
10
21
27
3,547
21
25
18
24,826 25,961 26,678 28,002 29,174 30,260 31,018 32,057
24,013 24,918 25,829 27,117 28,291 29,362 30,050 31,076
813
1,042
849
886
883
898
967
981
19,764 20,643 21,192 21,504 22,585 23,091 23,549 23,843
5,062 5,318 5,486 6,498 6,589 7,169 7,469 8,214
610
626
680
604
481
634
549
683
5,672 5,944 6,166 7,102 7,069 7,803 8,018 8,897
699
965
882
1,339
835
1,060 1,214 1,578
281
293
364
356
317
362
432
393
419
672
519
983
518
698
782
1,185
4,973 4,980 5,283 5,763 6,234 6,743 6,804 7,319
92
-190
68
10
443
301
344
376
4,882 5,170 5,215 5,753 5,790 6,442 6,460 6,943
1,659 1,756 1,772 1,971 1,969 2,325 2,271 2,463
3,223 3,414 3,443 3,782 3,821 4,117 4,189 4,480
6,111
3,644
0.73
0.46
0.10
0.4
40.4
7,042
4,419
0.81
0.40
0.14
0.5
37.2
6,090
3,536
0.67
0.27
0.13
0.4
41.9
7,534
4,570
0.80
0.40
0.15
0.5
39.3
6,110
3,167
0.63
0.38
0.10
0.3
48.2
5,795
3,166
0.57
0.33
0.10
0.3
45.4
4,947
2,344
0.46
0.24
0.09
0.2
52.6
6,591
3,598
0.60
0.36
0.10
0.3
45.4
6,830
3,690
0.60
0.33
0.11
0.3
46.0
6,820
3,740
0.58
0.32
0.10
0.3
45.2
5,678
2,705
0.45
0.20
0.09
0.2
52.4
-17
-28
0
0
0
0
7
15
15
0
0
0
0
0
Margins (%) - (calculated)
Yield on loans
10.9
Cost of funds
9.7
Spreads
1.2
NIMs (reported)
2.2
Other Details
Cost to Income (%)
Tax Rate (%)
10.9
9.7
1.2
2.2
10.8
9.4
1.5
2.4
10.7
9.6
1.2
2.2
10.9
9.7
1.2
2.2
10.7
9.5
1.2
2.2
10.7
9.2
1.5
2.5
10.7
9.3
1.4
2.4
10.8
9.3
1.5
2.6
10.7
9.2
1.6
2.6
10.6
8.9
1.7
2.7
0
0
0
0
0
0
0
0
16.4
26.8
16.0
28.4
19.6
29.1
13.8
34.0
18.1
34.0
16.1
34.0
20.6
34.3
12.7
34.0
14.8
36.1
16.3
35.2
19.2
3
-1
35.5
0
1
Source: Company, MOSL
18 April 2016
4

LIC Housing Finance
Story in charts
Exhibit 4: Individual disbursements grew 32% YoY (INR b)
FY14
FY15
FY16
Exhibit 5: Project loan disbursements picks up (INR b)
FY14
FY15
FY16
126
96
3
6.4
59
51 55
57
70
79
58
72
81
77
4
3
2
2
4
4
4
2
1 1
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Source: Company, MOSL
Source: Company, MOSL
Exhibit 6: Loan growth remains continues to moderate
Loans (INR b)
YoY Gr. (%)
Exhibit 7: Reported margins improve 24bp YoY (%)
2.3
2.2
2.2
2.4
2.2
2.2
2.2
2.5
2.4
2.6
2.6
2.7
23 24 23
22 20
19
17 17 17
18 19 18
17
15 16
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: Asset quality remains stable YoY (%)
GNPA (%)
NNPA (%)
Exhibit 9: Project loans showing signs of pick up (%)
2.7
2.5 2.4 2.6 2.6
2.5 2.3
2.4
2.2 2.2
2.2 2.2 2.2
2.2 2.1 2.1
Source: Company, MOSL
Source: Company, MOSL
18 April 2016
5

LIC Housing Finance
Exhibit 10: Financials: Valuation Metrics
66
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
DCBB
FB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
CBK
UNBK
OBC
INBK
CRPBK
ANDB
IDBI
DBNK
Public Aggregate
HDFC*
LICHF
DEWH
IHFL
GRHF
REPCO
RECL
POWF
SHTF
MMFS
BAF
MUTH
SKSM
NBFC Aggregate
Rating
Buy
Buy
Buy
Neutral
Buy
Buy
Under Review
Neutral
Neutral
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
CMP
Mcap
EPS (INR)
FY18
26.6
70.4
46.5
31.3
93.5
63.3
7.7
5.5
21.6
3.7
28.7
21.6
18.7
20.7
55.2
38.4
32.2
27.4
21.6
27.9
8.7
15.6
40
50
40
82
10
42
50
43
92
17
366
32
46
P/E (x)
FY17
7.6
18.6
11.4
27.7
11.9
19.4
12.7
9.9
3.3
5.8
15.6
7.3
4.9
23.0
9.0
4.1
4.5
3.6
4.6
2.1
2.3
12.4
2.9
7.5
32.1
11.6
6.5
9.5
31.9
20.4
3.6
4.0
13.6
20.9
24.1
7.5
16.6
14.5
BV (INR)
P/BV (x)
FY17
1.14
3.32
1.78
3.31
2.31
2.93
1.30
0.88
0.39
0.58
2.31
0.72
0.38
0.29
0.87
0.33
0.40
0.20
0.34
0.26
0.27
0.57
0.23
0.59
6.01
2.26
1.02
2.13
9.16
3.70
0.48
0.54
1.95
2.37
4.51
1.20
4.02
2.27
RoA (%)
RoE (%)
(INR) (USDb) FY17
237
20.8 22.2
1,088
41.6 58.5
444
16.0 38.9
683
18.9 24.7
893
5.7
74.9
988
8.8
50.8
88
0.4
6.9
45
1.2
4.5
59
0.4
18.0
18
0.4
3.1
114.1
187
22.0 24.1
83
2.5
16.8
93
1.1
4.0
148
5.2
16.4
194
1.6
47.3
128
1.3
28.2
91
0.4
25.0
98
0.7
21.1
39
0.1
18.7
54
0.5
22.8
71
2.1
5.7
29
0.2
10.0
37.7
1,127
26.9
35
485
3.7
42
207
0.9
32
643
4.2
68
256
1.4
8
668
0.6
33
160
2.4
44
168
3.4
42
998
3.4
73
278
2.4
13
7,313
5.9
303
187
1.1
25
569
1.1
34
57.5
FY18 FY17 FY18
5.9
147 166
15.5 328 382
9.6
249 288
21.8 206 237
9.6
386 461
15.6 337 392
11.4
68
75
8.2
51
56
2.7
152 168
4.9
31
34
12.9
6.1
243 266
3.8
220 239
5.0
318 334
7.2
171 187
3.5
584 626
3.3
323 354
2.8
458 483
3.6
290 311
1.8
152 169
1.9
196 216
8.2
125 132
1.9
128 141
5.9
28.3 188 212
9.8
215 255
5.2
203 234
7.8
302 336
25.2
28
35
15.9 181 218
3.2
332 370
3.9
310 341
10.9 513 585
16.4 117 129
20.0 1,622 1,928
5.9
156 177
12.4 142 177
12.6
FY18 FY17 FY18 FY17 FY18
0.94 1.39 1.43 13.4 14.3
2.85 1.88 1.86 19.2 19.8
1.54 1.63 1.64 16.6 17.3
2.88 1.38 1.54 13.9 14.8
1.94 1.81 1.84 21.0 22.1
2.52 2.02 2.03 16.1 17.4
1.17 0.93 0.85 10.8 10.8
0.81 0.79 0.83 9.1 10.3
0.35 1.02 1.07 12.4 13.5
0.53 0.58 0.61 10.3 11.4
2.03
0.65 0.61 0.64 10.2 11.3
0.35 0.48 0.55 7.9 9.4
0.28 0.05 0.19 1.3 5.7
0.79 0.49 0.55 9.9 11.5
0.31 0.41 0.43 8.4 9.1
0.36 0.45 0.54 9.1 11.3
0.19 0.29 0.33 5.6 6.8
0.31 0.45 0.51 7.5 9.1
0.23 0.57 0.59 12.9 13.4
0.25 0.62 0.65 12.2 13.6
0.54 0.29 0.39 4.7 6.8
0.21 0.38 0.53 8.0 11.6
0.55
5.32 2.28 2.28 24.2 19.8
1.90 1.53 1.51 21.1 21.1
0.89 1.25 1.27 16.9 18.3
1.91 3.84 3.69 23.4 25.7
7.41 1.91 2.19 26.9 32.5
3.07 2.16 2.10 19.7 21.0
0.43 1.90 1.88 14.0 14.4
0.49 2.07 1.85 14.1 13.2
1.70 2.21 2.40 15.2 16.6
2.15 1.94 2.23 11.8 13.7
3.79 3.04 2.79 20.3 20.6
1.06 2.96 3.22 16.8 19.2
3.22 5.25 5.46 27.5 28.8
2.02
Source: MOSL
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
18 April 2016
6

LIC Housing Finance
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Change (%)
Fee Income
Income from Investments
Other Income
Net Income
Change (%)
Operating Expenses
Operating Income
Change (%)
Provisions/write offs
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
2012
59,827
45,911
13,916
1.4
1,322
804
198
16,240
-8.3
2,371
13,870
-10.8
1,561
12,309
3,167
25.7
9,142
-6.2
2,112
2013
74,591
59,246
15,345
10.3
1,549
617
-168
17,343
6.8
2,819
14,524
4.7
789
13,736
3,504
25.5
10,232
11.9
2,244
2014
90,733
71,744
18,990
23.8
1,080
1,083
450
21,603
24.6
3,133
18,470
27.2
215
18,255
5,083
27.8
13,172
28.7
2,657
2015
105,467
83,102
22,364
17.8
1,227
815
343
24,749
14.6
3,885
20,864
13.0
-20
20,884
7,158
34.3
13,727
4.2
3,022
2016
122,508
93,068
29,441
31.6
1,453
893
0
31,787
28.4
4,688
27,099
29.9
1,463
25,635
9,028
35.2
16,608
21.0
3,386
2017E
141,750
105,570
36,180
22.9
1,821
993
0
38,994
22.7
5,484
33,509
23.7
2,000
31,509
11,028
35.0
20,481
23.3
4,176
(INR Million)
2018E
166,692
125,071
41,622
15.0
2,163
1,093
0
44,878
15.1
6,418
38,460
14.8
930
37,530
12,760
34.0
24,770
20.9
5,050
(INR Million)
2018E
1,010
126,475
127,485
1,639,115
19.2
1,766,600
3,099
8.0
1,781,647
19.2
925
-19,070
1,766,600
Balance Sheet
Y/E March
Capital
Reserves & Surplus
Net Worth
Borrowings
Change (%)
Total Liabilities
Investments
Change (%)
Loans
Change (%)
Net Fixed Assets
Net Current Assets
Total Assets
E: MOSL Estimates
2012
1,010
55,812
56,822
560,873
24.2
617,695
13,750
-2.0
630,802
23.5
623
-27,481
617,695
2013
1,010
63,803
64,813
687,641
22.6
752,454
18,673
35.8
778,120
23.4
624
-44,963
752,454
2014
1,010
74,319
75,329
820,356
19.3
895,685
1,993
-89.3
913,410
17.4
756
-20,474
895,685
2015
1,010
77,174
78,184
965,319
17.7
1,043,503
2,371
19.0
1,083,610
18.6
797
-43,275
1,043,503
2016
1,010
90,450
91,460
1,109,360
14.9
1,200,820
2,609
10.0
1,251,730
15.5
849
-54,368
1,200,820
2017E
1,010
106,755
107,765
1,374,642
23.9
1,482,408
2,869
10.0
1,494,177
19.4
892
-15,530
1,482,408
18 April 2016
7

LIC Housing Finance
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield on loans
Avg. Yield on Earning Assets
Avg. Cost-Int. Bear. Liab.
Int. Spread on Hsg. Loans
Net Int. Margin on Hsg. Loans
Profitability Ratios (%)
AdjRoAE
AdjRoAA
Int. Expended/Int.Earned
Other Inc./Net Income
Efficiency Ratios (%)
Fees/Operating income
Op. Exps./Net Income
Empl. Cost/Op. Exps.
Asset-Liability Profile (%)
Loans/Borrowings Ratio
Debt/Equity (x)
Gross NPAs (Rs m)
Gross NPAs to Adv.
Net NPAs (Rs m)
Net NPAs to Adv.
CAR
2012
10.5
10.2
9.1
1.4
2.4
2013
10.6
10.2
9.5
1.1
2.2
2014
10.7
10.5
9.5
1.21
2.25
2015
10.6
10.3
9.3
1.25
2.24
2016
10.5
10.3
9.0
1.52
2.52
2017E
10.3
10.1
8.5
1.8
2.64
2018E
10.2
9.9
8.3
1.9
2.54
20.3
1.8
76.7
1.2
16.8
1.5
79.4
-1.0
17.2
1.5
79.1
2.1
17.5
1.4
78.8
1.4
19.3
1.5
76.0
0.0
20.4
1.5
74.5
0.0
20.9
1.5
75.0
0.0
2.1
14.6
30.6
2.0
16.3
32.1
1.2
14.5
33.1
1.1
15.7
34.1
1.2
14.7
32.1
1.3
14.1
32.9
1.3
14.3
33.7
112.5
9.9
2,652
0.4
849
0.1
13.0
113.2
10.6
4,712
0.6
1,953
0.3
12.5
111.3
10.9
6,090
0.7
3,534
0.4
16.4
112.3
12.3
4,947
0.5
2,344
0.2
16.5
112.8
12.1
5,489
0.4
2,744
0.2
15.5
108.7
12.8
6,114
0.4
3,057
0.2
14.5
108.7
12.9
6,712
0.4
3,356
0.2
13.5
Valuation
Book Value (INR)
Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Growth (%)
Price-Earnings (x)
Adj. EPS (INR)
Growth (%)
Price-Earnings (x)
Dividend Per Share
Dividend Yield (%)
E: MOSL Estimates
112.5
28.2
4.3
112.1
4.3
18.1
-11.7
26.8
19.8
-8.4
24.5
3.6
0.7
128.3
14.1
3.8
127.3
3.8
20.3
11.9
23.9
20.3
2.2
23.9
3.8
0.8
149.2
16.2
3.3
147.3
3.3
26.1
28.7
18.6
23.8
17.4
20.4
4.5
0.9
154.8
3.8
3.1
153.6
3.1
27.2
4.2
17.8
26.7
12.1
18.2
5.0
1.0
181.1
17.0
2.7
179.6
2.7
32.9
21.0
14.7
32.5
21.8
14.9
5.8
1.2
213.4
17.8
2.3
211.8
2.3
40.6
23.3
12.0
40.1
23.6
12.1
7.1
1.5
252.5
18.3
1.9
250.7
1.9
49.1
20.9
9.9
48.6
21.1
10.0
8.6
1.8
18 April 2016
8

LIC Housing Finance
Corporate profile
Company description
LIC Housing Finance (LICHF) is the second largest
housing finance company which 10% mortgage
market share in India. LIC is promoted by
government owned largest insurance company the
LIC of India. LICHF individual housing loans, loan
against property and loans to developers as project
finance. LICHF operates through a network of 234
marketing offices and a large number of DSAs and
Home Loan Agents. It also has representative office
in Dubai and Kuwait and has loan book of INR1.1t as
Exhibit 2: Shareholding pattern (%)
Dec-15
Promoter
DII
FII
Others
40.3
6.6
36.9
16.2
Sep-15
40.3
7.6
35.4
16.7
Dec-14
40.3
5.9
41.4
12.4
Source: Capitaline
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
Bank Muscat S A O G A/C Bankmuscat India
Fund
Government Of Singapore
Mawer Investment Management Ltd. A/C
Mawer International Equity Fund
Hsbc Global Investment Funds A/C Hsbc Gif
Mauritius Limited
Hdfcsl Shareholders Solvency Margin
Account
Source: Capitaline
1.5
1.5
1.5
2.3
1.7
% Holding
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
S K Roy
Sunita Sharma
Nitin K Jage
Designation
Chairman
Managing Director & CEO
Company Secretary
Exhibit 5: Directors
Name
DharmendraBhandari
Savita Singh
Ameet N Patel
V K Kukreja
Name
JagdishCapoor
T V Rao
DebabrataSarkar
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Chokshi&Chokshi LLB
P S Gupchup
Shah Gupta & Co
Type
Statutory
Secretarial Audit
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
FY18
Source: Capitaline
MOSL
forecast
32.9
40.6
49.1
Consensus
forecast
33.5
40.0
47.3
Variation (%)
-1.9
1.4
3.8
Source: Bloomberg
18 April 2016
9

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