LIC Housing Finance Ltd.
NSE: LICHSGFINLIC Housing Finance Ltd.: A 30-second snapshot
LIC Housing Finance (LICHSGFIN) is a large NBFC/HFC trading at a PE of 5.62 with a forward PE of 5.06, against peers in the 15-30x range. FY26 PAT grew 3% to Rs. 5,595 crore with NIM at 2.68%, while management guided for 10-12% loan book growth in FY27 — the first upward revision after five years of negative revenue and earnings CAGRs.
P/E
5.6
Forward P/E
5.1
ROE
—
Debt / Equity
679.25
Profit Margin
+65.1%
Div. Yield
+1.7%
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
47/100
News
5 headlines · 5 positive · 0 negative
LICHSGFIN: Loan growth guidance raised to 10%-12% for FY27, with asset quality and margins stable - TradingView
TradingView
LICHSGFIN: Loan book grew 4% YoY, NIM at 2.80%, and FY27 targets 10%-12% growth with stable margins - TradingView
TradingView
LIC Housing Finance reports Rs 1497.41 crore Q4 profit, up by 9% - Business Upturn
Business Upturn
LICHSGFIN: FY26 PAT up 3% to Rs. 5,595 crore; NIM at 2.68%; asset quality and disbursements improved - TradingView
TradingView
LICHSGFIN: Net profit and revenue rose year-over-year, with improved asset quality and a ₹10 dividend recommended - TradingView
TradingView
Recent context
- ·Q4 FY26 PAT of Rs. 1,497 crore (+9% YoY) and full-year PAT of Rs. 5,595 crore (+3%) were accompanied by a Rs. 10 dividend recommendation; management cited stable NIM of 2.80% for the quarter and 2.68% for the full year.
- ·Management raised FY27 loan growth guidance to 10-12%, the first upward revision after five years of sub-zero revenue and earnings CAGRs — a potential inflection if disbursement targets are met.
- ·Analyst coverage stands at 23 analysts with a mean rating of 2.54 on a 1-5 scale (lower = more constructive), suggesting a spread of views across the coverage universe rather than a single dominant stance.
Strengths
- +Lowest PE in the 6-stock peer group at 5.62, versus sector median above 17x; forward PE compresses further to 5.06, reflecting improving earnings expectations.
- +Profit margin of 65.14% indicates that the existing loan book generates earnings efficiently despite the top-line contraction.
- +Price is above both the 50-DMA (Rs. 529.67) and 200-DMA (Rs. 547.03) with a 3-month gain of 11.84% and a 52-week drawdown of only -7.82%.
- +Q4 FY26 PAT rose 9% YoY to Rs. 1,497 crore; FY26 full-year PAT up 3%; asset quality and disbursements described as improved in the results announcement.
Weaknesses
- −5-year revenue CAGR of -2% and earnings CAGR of -2.6% show the franchise has been shrinking in absolute scale for half a decade — the FY27 guidance is the first positive pivot on record.
- −FCF has been positive in 0 of the tracked years; the balance sheet relies entirely on incremental external borrowings to fund loan disbursements, leaving no internal cash-flow cushion.
- −Quality score of 30/100 ranks 4th of 6 in the peer group; ROE exceeded 15% in only 1 of tracked years, against peers such as Bajaj Finance (ROE 17.91%) and HDFC Bank (ROE 13.82%).
- −Debt-to-equity ratio of 679.25 is rising, a meaningful flag even in an NBFC context where high leverage is structural — a sustained rising D/E trend narrows the margin of safety if credit costs increase.
Open questions
- ?Does the 10-12% FY27 loan growth guidance represent a structural improvement in the housing-finance competitive environment, or is it a base-effect recovery after a period of deliberate portfolio conservatism?
- ?How has asset quality (GNPA/NNPA) trended over the past 4-6 quarters, and does the stable characterisation in the results cover the full book or only select segments?
- ?Given that FCF has been positive in 0 of tracked years and D/E is rising, what funding-mix or cost-of-funds trajectory would be needed to sustain the guided growth without further margin compression?
- ?Does the 65% profit margin alongside negative 5-year CAGRs reflect a business that has prioritised quality of book over volume, or a business that has lost pricing or origination share to competitors?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LICHSGFIN | LIC Housing Finance Ltd.You're viewing | 5.6 | — | 30 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹585.65
SMA 50
₹529.67
SMA 200
₹547.03
RSI (14)
63.7 (neutral)
From 52w high
-7.8%
1Y return
+3.7%
3M return
+11.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity ratio of 679.25 is structurally elevated; while NBFC/HFC business models carry leverage by design, the trend is rising and FCF has been positive in 0 of tracked years — the lending book is funded entirely by incremental borrowing with no free-cash-flow buffer recorded.
- high5-year revenue CAGR of -2% and 5-year earnings CAGR of -2.6% indicate a prolonged contraction phase, not a one-quarter miss. Quality score of 30/100 ranks 4th of 6 peers; ROE exceeded 15% in only 1 of tracked years.
- mediumNews sample is sparse (5 articles, all from a 2-day window around the Q4 results). Sentiment is entirely positive but concentrated — a broader sample may yield a materially different distribution.
- lowRSI of 63.72 is in the upper neutral zone after an 11.84% 3-month gain. No resistance levels were identified, leaving the upper price boundary undefined on current data.
Cross-section contradictions
- 5-year earnings and revenue CAGRs are both negative (-2.6% and -2% respectively), yet trailing profit margin stands at 65.14% and PE is 5.62 — the business remains profitable on its existing book while the portfolio is shrinking in scale.
- Price is above both the 50-DMA (529.67) and 200-DMA (547.03) and has gained 11.84% over 3 months, yet the 1-year price change is only +3.69% — the recent short-term recovery has not yet meaningfully shifted the full-year return picture.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days