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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

LIC Housing Finance Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:59 pm

Market Cap 33,969 Cr.
Current Price 617
High / Low827/453
Stock P/E6.95
Book Value 611
Dividend Yield1.46 %
ROCE8.79 %
ROE16.2 %
Face Value 2.00
PEG Ratio0.71

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for LIC Housing Finance Ltd

Competitors of LIC Housing Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ind Bank Housing Ltd 43.3 Cr. 43.387.9/31.6 1210.00 %7.86 %% 10.0
Home First Finance Company India Ltd 9,689 Cr. 1,0871,383/77728.3 2570.31 %11.2 %15.5 % 2.00
Aptus Value Housing Finance India Ltd 15,757 Cr. 315402/28223.3 80.31.43 %14.7 %17.2 % 2.00
Repco Home Finance Ltd 2,808 Cr. 448595/3666.60 4940.67 %10.5 %14.6 % 10.0
PNB Housing Finance Ltd 22,249 Cr. 8551,202/60013.1 5750.00 %9.27 %11.8 % 10.0
Industry Average10,540.00 Cr420.9912.67287.990.76%11.06%13.49%5.64

All Competitor Stocks of LIC Housing Finance Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue4,9114,9824,8654,7185,0645,3285,2965,0965,8906,4316,7596,7656,804
Interest3,5943,3923,5493,5053,5463,5513,6393,8864,2324,3784,4934,6004,646
Expenses3481,2131,1118925524565048111,069582602670686
Financing Profit9683772043209671,3201,1533995891,4721,6641,4961,473
Financing Margin %20%8%4%7%19%25%22%8%10%23%25%22%22%
Other Income16-2351496560000
Depreciation14121314141516161719191318
Profit before tax9703621943129681,3141,1433885771,4531,6451,4831,454
Tax %26%-12%22%20%20%15%19%20%20%18%20%20%20%
Net Profit7214061512507711,1149263134621,1911,3191,1921,167
EPS in Rs14.298.053.004.5414.0220.2516.845.698.4021.6523.9821.6721.21
Gross NPA %
Net NPA %

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue6,2327,7359,33910,81212,49114,09214,87617,39819,74019,88619,97822,71425,846
Interest4,5915,9257,1748,3109,30710,23111,14412,89114,78114,45014,15116,13517,703
Expenses4113963573906118879401,1041,5922,0123,0122,9642,922
Financing Profit1,2301,4141,8082,1122,5732,9742,7923,4043,3673,4232,8153,6155,221
Financing Margin %20%18%19%20%21%21%19%20%17%17%14%16%20%
Other Income1211341712900-33-527146
Depreciation88810101010125152556969
Profit before tax1,2351,4181,8342,1192,5752,9732,7823,3923,2823,3652,7873,5615,158
Tax %26%26%28%34%35%35%28%28%27%19%18%19%
Net Profit9201,0481,3191,3961,6681,9422,0082,4342,4042,7412,2862,8914,166
EPS in Rs18.2320.7626.1227.6533.0538.4939.7948.2347.6254.3141.5552.5675.73
Dividend Payout %20%18%17%18%17%16%17%16%17%16%20%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)13.91%25.86%5.84%19.48%16.43%3.40%21.22%-1.23%14.02%-16.60%26.47%
Change in YoY Net Profit Growth (%)0.00%11.95%-20.02%13.65%-3.06%-13.03%17.82%-22.45%15.25%-30.62%43.07%

LIC Housing Finance Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:9%
3 Years:11%
TTM:6%
Compounded Profit Growth
10 Years:14%
5 Years:14%
3 Years:20%
TTM:17%
Stock Price CAGR
10 Years:4%
5 Years:7%
3 Years:16%
1 Year:36%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:13%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital101101101101101101101101101110110110110
Reserves6,4327,4857,7799,11411,05514,21016,23018,16420,50024,64127,07531,36733,502
Borrowings68,76482,03696,532110,931126,337150,913170,657191,428207,925223,757244,913252,618257,685
Other Liabilities5,3506,2408,21810,44113,5046,00413,7197,2277,1956,1796,4617,2398,019
Total Liabilities80,64795,862112,630130,587150,997171,228200,707216,920235,721254,687278,559291,334299,315
Fixed Assets738690102102129168294282315388389396
CWIP0000532364100
Investments1951942412805372,0083,6175,4854,6446,2797,0506,3376,276
Other Assets80,37995,581112,298130,204150,352169,088196,920211,138230,789248,088271,120284,607292,643
Total Assets80,64795,862112,630130,587150,997171,228200,707216,920235,721254,687278,559291,334299,315

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-12,578-11,523-14,345-13,039-14,273-18,977-21,538-14,738-17,140-16,729-19,632-7,151
Cash from Investing Activity +-27-2-58-58-2781,368-1,642-1,851858-1,629-800587
Cash from Financing Activity +12,46713,04814,23214,09815,07218,07424,06815,15616,24517,85020,2497,346
Net Cash Flow-1381,524-1711,001521465887-1,434-37-508-183781

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow411.00328.00275.00294.00501.00761.00790.00-169.00-190.00-205.00-220.00-242.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %17%19%18%20%19%16%16%14%14%10%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.31%40.31%45.24%45.24%45.24%45.24%45.24%45.24%45.24%45.24%45.24%45.24%
FIIs28.20%28.80%24.07%23.46%23.03%20.67%20.97%19.32%17.66%17.15%21.21%21.91%
DIIs16.82%15.57%14.96%14.92%16.23%19.22%20.68%22.74%24.18%25.03%21.51%21.76%
Public14.67%15.32%15.73%16.38%15.50%14.88%13.10%12.70%12.92%12.56%12.03%11.09%
No. of Shareholders2,96,5703,24,1383,84,4144,16,1464,52,1334,42,3593,77,7013,64,7853,62,9743,49,1733,24,8143,05,862

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund7,700,0001.65378.193,025,0002024-11-22154.55%
Mirae Asset Emerging Bluechip Fund7,135,3891.17327.663,025,0002024-11-22135.88%
ICICI Prudential Value Discovery Fund6,800,7080.96312.293,025,0002024-11-22124.82%
Mirae Asset Midcap Fund4,252,9241.66195.293,025,0002024-11-2240.59%
Nippon India Banking & Financial Services Fund3,025,0003.07148.573,025,0002024-11-220%
ICICI Prudential Balanced Advantage Fund3,168,5740.29145.53,025,0002024-11-224.75%
HDFC Large and Mid Cap Fund - Regular Plan3,008,0011.16138.133,025,0002024-11-22-0.56%
SBI Arbitrage Opportunities Fund2,334,0000.48114.633,025,0002024-11-22-22.84%
ICICI Prudential Bluechip Fund2,390,4590.27109.773,025,0002024-11-22-20.98%
Tata Large & Mid Cap Fund - Regular Plan2,200,0001.89108.053,025,0002024-11-22-27.27%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)86.5352.5643.1254.3247.63
Diluted EPS (Rs.)86.5352.5643.1254.3247.63
Cash EPS (Rs.)87.7353.7842.5455.3248.61
Book Value[Excl.RevalReserv]/Share (Rs.)571.95493.97449.74408.04361.76
Book Value[Incl.RevalReserv]/Share (Rs.)571.95493.97449.74408.04361.76
Revenue From Operations / Share (Rs.)495.58412.68362.91393.74390.85
PBDIT / Share (Rs.)445.47359.09308.75353.86358.74
PBIT / Share (Rs.)444.21357.84307.75352.82357.73
PBT / Share (Rs.)110.1864.6950.6466.6465.00
Net Profit / Share (Rs.)86.4752.5341.5354.2847.60
NP After MI And SOA / Share (Rs.)86.4752.5241.5354.2847.59
PBDIT Margin (%)89.8887.0185.0789.8791.78
PBIT Margin (%)89.6386.7184.8089.6091.52
PBT Margin (%)22.2315.6713.9516.9216.63
Net Profit Margin (%)17.4412.7211.4413.7812.17
NP After MI And SOA Margin (%)17.4412.7211.4413.7812.17
Return on Networth / Equity (%)15.1210.639.2313.3013.15
Return on Capital Employeed (%)75.7470.449.8210.6810.96
Return On Assets (%)1.631.030.891.161.10
Long Term Debt / Equity (X)0.000.005.957.078.00
Total Debt / Equity (X)8.029.009.0310.0910.47
Asset Turnover Ratio (%)0.090.080.080.080.09
Current Ratio (X)1.121.103.073.404.14
Quick Ratio (X)1.121.103.073.404.14
Dividend Payout Ratio (NP) (%)9.8215.9820.4514.7315.95
Dividend Payout Ratio (CP) (%)9.6815.6119.9714.4515.62
Earning Retention Ratio (%)90.1884.0279.5585.2784.05
Cash Earning Retention Ratio (%)90.3284.3980.0385.5584.38
Interest Coverage Ratio (X)1.331.221.201.241.23
Interest Coverage Ratio (Post Tax) (X)1.261.181.161.191.16
Enterprise Value (Cr.)284428.06262002.07242411.98228032.23201136.44
EV / Net Operating Revenue (X)10.4311.5312.1411.4710.19
EV / EBITDA (X)11.6013.2614.2612.7611.10
MarketCap / Net Operating Revenue (X)1.230.790.991.090.60
Retention Ratios (%)90.1784.0179.5485.2684.04
Price / BV (X)1.070.660.791.050.65
Price / Net Operating Revenue (X)1.230.790.991.090.60
EarningsYield0.140.150.110.120.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of LIC Housing Finance Ltd as of November 23, 2024 is: 697.97

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, LIC Housing Finance Ltd is Undervalued by 13.12% compared to the current share price 617.00

Intrinsic Value of LIC Housing Finance Ltd as of November 23, 2024 is: 765.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, LIC Housing Finance Ltd is Undervalued by 24.12% compared to the current share price 617.00

Last 5 Year EPS CAGR: 9.72%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in LIC Housing Finance Ltd:
    1. Net Profit Margin: 17.44%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 75.74% (Industry Average ROCE: 11.06%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.12% (Industry Average ROE: 11.04%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.26
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.12
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 6.95 (Industry average Stock P/E: 10.37)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 8.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

LIC Housing Finance Ltd. is a Public Limited Listed company incorporated on 19/06/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65922MH1989PLC052257 and registration number is 052257. Currently Company is involved in the business activities of Activities of specialized institutions granting credit for house purchases that also take deposits. Company’s Total Operating Revenue is Rs. 19919.07 Cr. and Equity Capital is Rs. 110.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - HousingBombay Life Building, Mumbai Maharashtra 400001lichousing@lichousing.com
http://www.lichousing.com
Management
NamePosition Held
Mr. Siddhartha MohantyChairperson
Mr. Tribhuwan AdhikariManaging Director & CEO
Mr. P Koteswara RaoNon Executive Director
Mr. Akshay RoutNon Executive Director
Mr. Jagannath MukkavilliNon Exe. & Nominee Director
Dr. Dharmendra BhandariIndependent Director
Mr. Ravi Krishan TakkarIndependent Director
Mr. Ameet PatelIndependent Director
Mr. Kashi Prasad KhandelwalIndependent Director
Mr. Sanjay Kumar KhemaniIndependent Director
Mr. V K KukrejaIndependent Director
Mrs. Jagennath JayanthiIndependent Director
Mr. Anil KaulIndependent Director
Mr. Ramesh Lakshman AdigeIndependent Director

FAQ

What is the latest intrinsic value of LIC Housing Finance Ltd?

The latest intrinsic value of LIC Housing Finance Ltd as on 23 November 2024 is ₹697.97, which is 13.12% higher than the current market price of ₹617.00.

What is the Market Cap of LIC Housing Finance Ltd?

The Market Cap of LIC Housing Finance Ltd is 33,969 Cr..

What is the current Stock Price of LIC Housing Finance Ltd as on 23 November 2024?

The current stock price of LIC Housing Finance Ltd as on 23 November 2024 is 617.

What is the High / Low of LIC Housing Finance Ltd stocks in FY 2024?

In FY 2024, the High / Low of LIC Housing Finance Ltd stocks is 827/453.

What is the Stock P/E of LIC Housing Finance Ltd?

The Stock P/E of LIC Housing Finance Ltd is 6.95.

What is the Book Value of LIC Housing Finance Ltd?

The Book Value of LIC Housing Finance Ltd is 611.

What is the Dividend Yield of LIC Housing Finance Ltd?

The Dividend Yield of LIC Housing Finance Ltd is 1.46 %.

What is the ROCE of LIC Housing Finance Ltd?

The ROCE of LIC Housing Finance Ltd is 8.79 %.

What is the ROE of LIC Housing Finance Ltd?

The ROE of LIC Housing Finance Ltd is 16.2 %.

What is the Face Value of LIC Housing Finance Ltd?

The Face Value of LIC Housing Finance Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in LIC Housing Finance Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE