LIC Housing Finance Ltd (LICHSGFIN) AI Stock Analysis

• Market Cap: ₹286.78B
• Dividend Yield: 1.87%
• Average Volume (3M): 58.15K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.56
• Revenue Growth: 4.79%
• EPS Growth: 13.08%
• Country: IN
• Employees: 2,349
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 25.16
• Shares Outstanding: 550,063,000
• 10 Day Avg. Volume: 43,522
• 30 Day Avg. Volume: 58,149
• PEG Ratio: 0.39
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -1.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹550.00
• Price Target Upside: 10.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 98.96
• Revenue Forecast (FY): ₹88.88B

• Rating: 55 Neutral
• Price Target: ₹520.00 ▲(4.63% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and high leverage, which pose significant risks. Technical analysis suggests some bullish momentum, but caution is advised due to potential overbought conditions. The stock's valuation appears attractive with a low P/E ratio, offering potential upside if financial stability improves.

Positive Factors

High profitability margins

Sustained high EBIT and net margins indicate disciplined pricing and cost control in core lending and investment operations. These margins provide a durable earnings buffer to absorb credit losses or cyclic revenue pressure, supporting long-run profitability and capital retention.

Strong franchise and LIC affiliation

Well‑established franchise with wide distribution and affiliation to LIC supports trust, customer acquisition, and access to funding. Structural brand and network advantages underpin long-term loan origination capacity and partnerships with developers across India.

Efficient equity returns (ROE ~15%)

Mid-teens ROE reflects effective deployment of shareholder capital in lending operations. Even with high leverage, a healthy ROE denotes sustained underlying profitability and the ability to generate returns that can fund growth or rebuild equity over time if cash generation improves.

Negative Factors

Severe revenue decline

A >60% revenue drop signals structural pressure on loan origination or portfolio size, reducing scale economics and long-term earning power. Persistently lower revenue can erode franchise value, strain margins despite high profitability metrics, and impede reinvestment.

Very high leverage

Extremely high debt reliance amplifies refinancing and interest-rate risks and constrains strategic flexibility. In a capital-intensive mortgage business, high leverage raises default vulnerability and increases the cost of raising incremental funding during stress periods.

Weak and negative cash flows

Negative operating and free cash flows indicate the business isn’t generating sufficient internal cash to fund operations or growth. Combined with heavy debt, this creates lasting liquidity risk, forcing reliance on external financing and limiting ability to shore up balance sheet.

LIC Housing Finance Ltd Business Overview & Revenue Model

Company Description

LIC Housing Finance Limited, a housing finance company, provides loans for the purchase, construction, repair, and renovation of houses/buildings in India. It offers deposits; home loans to residents and non-residents, as well as to pensioners; construction finance and term loans for builders/developers; and loans for staff quarters and other lines of credit for corporates. The company also provides loans against properties for companies and individuals; loans against securities; loans under rental securitization; and loans to professionals. In addition, it manages, advises, and acts as a trustee to venture capital and alternative investment funds; develops residential projects for senior citizens; and markets life and general insurance products, mutual funds, and credit and LIC cards. The company markets its products through home loan agents, direct sales agents, and customer relation associates. As of March 31, 2021, it operated through a network of 24 back offices, 282 marketing offices, 1 customer service point, and 9 regional offices, as well as representative offices in Dubai and Kuwait. LIC Housing Finance Limited was incorporated in 1989 and is based in Mumbai, India.

How the Company Makes Money

LICHSGFIN generates revenue primarily through interest income earned on its housing loans and other financial products. The company disburses loans at competitive interest rates and earns interest on the outstanding loan amounts over time. Additionally, LICHSGFIN earns income from fees associated with loan processing, documentation, and other service charges. Another significant revenue stream comes from investments in government securities and other financial instruments, which provide interest income. The company benefits from its association with LIC, which enhances its credibility and allows access to a wider customer base. Strategic partnerships with real estate developers and builders help LICHSGFIN tap into new markets and increase its loan disbursement volumes, thereby boosting its earnings.

LIC Housing Finance Ltd Financial Statement Overview

Summary

LIC Housing Finance Ltd shows strong profitability with a net profit margin of 65.60% and an EBIT margin of 86.33%. However, the company faces significant challenges with a drastic revenue decline of -63.58%, high leverage with a debt-to-equity ratio of 7.22, and negative cash flow metrics indicating potential liquidity issues.

Income Statement

The income statement shows a significant decline in revenue growth rate, with a negative growth of -63.58% in the latest period. Despite this, the company maintains strong profitability metrics with a net profit margin of 65.60% and an EBIT margin of 86.33%. However, the drastic revenue decline is a major concern.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 7.22, indicating significant reliance on debt financing. Return on equity is reasonable at 14.97%, suggesting efficient use of equity. However, the high leverage poses potential risks in terms of financial stability.

Cash Flow

The cash flow statement indicates negative operating and free cash flows, with a concerning free cash flow growth rate of -Infinity. The operating cash flow to net income ratio is negative, highlighting potential liquidity issues. The free cash flow to net income ratio is slightly above 1, indicating some alignment with net income, but overall cash flow health is weak.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	281.78B	277.23B	270.65B	225.14B	198.17B	197.22B
Gross Profit	83.53B	81.95B	86.77B	63.80B	56.66B	52.72B
EBITDA	70.48B	69.77B	61.37B	36.30B	28.40B	34.18B
Net Income	55.00B	54.42B	47.63B	28.91B	22.86B	27.41B
Balance Sheet
Total Assets	0.00	3.14T	2.91T	2.79T	2.55T	2.36T
Cash, Cash Equivalents and Short-Term Investments	0.00	14.74B	16.55B	8.22B	9.99B	14.82B
Total Debt	0.00	2.62T	2.43T	2.33T	2.06T	1.90T
Total Liabilities	-363.56B	2.78T	2.60T	2.51T	2.30T	2.15T
Stockholders Equity	363.56B	363.52B	314.77B	271.85B	247.51B	206.01B
Cash Flow
Free Cash Flow	0.00	-166.83B	-71.88B	-196.88B	-167.65B	-113.34B
Operating Cash Flow	0.00	-166.09B	-71.51B	-196.23B	-167.29B	-113.24B
Investing Cash Flow	0.00	-9.39B	5.87B	-7.99B	-16.28B	8.58B
Financing Cash Flow	0.00	174.13B	73.46B	202.49B	178.50B	162.45B

LIC Housing Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 497.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LICHSGFIN, the sentiment is Negative. The current price of 497 is below the 20-day moving average (MA) of 524.10, below the 50-day MA of 525.82, and below the 200-day MA of 562.36, indicating a bearish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LICHSGFIN.

LIC Housing Finance Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹110.07B	11.69	―	1.37%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GICHSGFIN	65 Neutral	₹8.11B	5.34	―	2.54%	1.07%	-13.63%
LTF	62 Neutral	₹689.74B	26.76	―	0.91%	15.90%	4.53%
REPCOHOME	62 Neutral	₹22.57B	5.62	―	1.61%	8.10%	2.97%
LICHSGFIN	55 Neutral	₹286.78B	5.31	―	1.87%	4.79%	13.08%
FUSION	48 Neutral	₹29.15B	45.02	―	―	-31.94%	-1096.32%

LIC Housing Finance Ltd Corporate Events

LIC Housing Finance Uploads Q3 FY26 Investor Presentation for Stakeholders

LIC Housing Finance Ltd has released and uploaded its investor presentation for the third quarter ended 31 December 2025 on its official website, providing detailed financial and operational updates for investors and analysts. The dissemination of this presentation underscores the company’s ongoing compliance with listing requirements and its commitment to transparency and regular communication with stakeholders regarding its quarterly performance and business developments.

LIC Housing Finance Q3 Profit Slips 3% as Loan Book and Disbursements Continue to Grow

LIC Housing Finance Ltd reported its unaudited results for the third quarter ended December 31, 2025, posting a profit after tax of Rs 1,383.95 crore, down 3% year-on-year, as net profit and profit before tax both softened slightly despite stable margins. Total revenue from operations rose 2% to Rs 7,187 crore, while net interest income increased 5% to Rs 2,102 crore and net interest margin remained broadly steady at 2.69%. Disbursements for the quarter grew 4% to Rs 16,096 crore, led by a 7% rise in individual home loan disbursements to Rs 13,094 crore and a 10% increase in non-housing individual loans to Rs 2,304 crore, even as project loans declined versus the previous year. The company’s outstanding loan portfolio expanded 5% to Rs 3,14,268 crore, indicating continued growth in core retail lending despite pressure on profitability, which will be closely watched by investors monitoring asset mix and margins in a competitive housing finance market.