LIC Housing Finance Stock Price Analysis and Quick Research Report. Is LIC Housing Finance an attractive stock to invest in?

Housing finance companies is a highly concentrated business-facing fierce competition and the industry has remained competitive for several years. The growth of the economy and also increase in the per capita income of individuals impact the housing industry as a whole.

These companies provide finance for housing in India to individuals and corporations. The housing finance companies majorly cater to low and middle-income individuals. The proportion of loans coming from housing companies is significantly increasing.

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse LIC Housing Finance. 

Key Financials -

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of LIC Housing Finance is Rs 5429.02 Cr. and the compounded growth of profit in the past 3 years is 33.3929217047176%. The PAT margin of LIC Housing Finance is 19.3547%.
• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In LIC Housing Finance , the EPS grew by 13.9255% YOY. 

 Financial Ratios -

• Return on Equity (ROE): LIC Housing Finance has a average ROE track record. The ROE of LIC Housing Finance is at 16.05% for the latest year.
• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of LIC Housing Finance is worth at the current levels at Rs 567.1. LIC Housing Finance is trading at a current P/E ratio of 5.7117 and the average historical P/E for the last 5 years was 7.11338918903172.
• P/B ratio can be one of the best metrics to value such companies. Currently, LIC Housing Finance is trading at a P/B of 0.829262814457454. The average historical P/B for the last 5 years was 0.889506607864856. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

One can find all the Financial Ratios of LIC Housing Finance in Ticker for free. Also, one can get the intrinsic value of LIC Housing Finance by using Valuation Calculators, which are available with a Finology ONE subscription. 

LIC Housing Finance FAQs

Q1. What is LIC Housing Finance share price today?
Ans: The current share price of LIC Housing Finance is Rs 567.1.

Q2. What is the market capitalisation of LIC Housing Finance?
Ans: LIC Housing Finance has a market capitalisation of Rs 31194.07273 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of LIC Housing Finance?
Ans: The PE ratio of LIC Housing Finance is 5.68329296267827 and the P/B ratio of LIC Housing Finance is 0.829262814457454, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of LIC Housing Finance share?
Ans: The 52-week high share price of LIC Housing Finance is Rs 735.55, and the 52-week low share price of LIC Housing Finance is Rs 483.7.

Q5. Does LIC Housing Finance pay dividends?
Ans: Currently, LIC Housing Finance pays dividends. Dividend yield of LIC Housing Finance is around 1.7615%.

Q6. What are the face value and book value of LIC Housing Finance shares?
Ans: The face value of LIC Housing Finance shares is Rs 2, while the book value per share of LIC Housing Finance is around Rs 683.8604. Face value is the nominal value set by the company, whereas book value reflects its accounting worth. 

Q7. What are the ROE and ROCE of LIC Housing Finance?
Ans: The ROE of LIC Housing Finance is 16.05% and ROCE of LIC Housing Finance is 8.9337%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q8. Is LIC Housing Finance a good buy for the long term?
Ans: The LIC Housing Finance long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q9. Is LIC Housing Finance undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the LIC Housing Finance appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q10. How to check LIC Housing Finance’s financials?
Ans: You can review LIC Housing Finance’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.