LIC Housing Finance shares hit 52-week high ahead of Q3 results today; here’s what to expect

LIC Housing Finance shares rose to a 52-week high on Friday, continuing to gain for the seventh session in a row, as investors awaited the non-banking financial company’s quarterly results due later in the day. The stock of Mumbai-headquartered LIC Housing Finance (LICHSGFIN) strengthened by as much as Rs 12.4, or two per cent, to Rs 642 apiece on BSE.

Analysts expect the housing finance firm to stage a strong financial performance later on Friday on the back of robust growth and easing credit costs.

According to Zee Business research, LIC Housing Finance is estimated to report a standalone net profit of Rs 1,140 crore for the quarter ended December 31, 2023, translating into a jump of 2.4 times compared with the corresponding period a year ago. They peg the NBFC’s net interest income (NII), or the difference between interest earned and interest paid, to grow 27 per cent on a year-on-year basis to Rs 2,040 crore.

Zee Business analysts expect LIC Housing Finance’s net interest margin (NIM), a key measure of profitability for financiers, to stand at 3.0 per cent for the fiscal third quarter as against 3.04 per cent a year ago.

The company’s asset quality is estimated to remain steady sequentially, with gross non-performing assets (GNPAs) for the October-December period pegged at 4.3 per cent as against 4.33 per cent three months ago, according to the research.

The analysts peg the company’s net non-performing assets (NNPAs) for the third quarter at 2.6 per cent as against 2.59 per cent the previous three months.

LIC Housing Finance Q2 Results

In November, LIC Housing Finance had staged a mixed financial performance for the fiscal second quarter. 

Its net profit rose about four per cent to Rs 1,188 crore with 83.2 per cent growth in NII to Rs 2,106.6 crore for the quarter ended September 30, according to a regulatory filing. 

Zee Business analysts had estimated the housing finance firm's second-quarter net profit at Rs 1,225 crore and NII at Rs 2,150 crore. 

LIC Housing Finance shares: Past performance

As of February 1, the LIC Housing Finance stock had rewarded investors with a 63.2 per cent return in one year, sharply outperforming a 23.2 per cent rise in the headline Nifty50 index. 

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