LIC Housing Finance Ltd (LICHSGFIN) AI Stock Analysis

• Market Cap: ₹292.77B
• Dividend Yield: 1.88%
• Average Volume (3M): 58.15K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.60
• Revenue Growth: 4.79%
• EPS Growth: 13.08%
• Country: IN
• Employees: 2,349
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 24.60
• 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): 1.10
• 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: ₹570.00
• Price Target Upside: 7.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹584.00 ▲(9.72% Upside)

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

Profitability

The company's robust profitability, highlighted by high net profit and EBIT margins, indicates efficient operations and a strong ability to generate earnings, which is crucial for long-term sustainability and competitiveness in the financial sector.

Market Position

Being a subsidiary of LIC, LICHSGFIN benefits from a strong brand reputation and extensive network, enhancing its market position and customer trust, which are critical for sustained growth and competitive advantage in the housing finance sector.

Cross-Selling Opportunities

Cross-selling opportunities and partnerships with developers expand LICHSGFIN's market reach and customer base, providing a diversified revenue stream and enhancing its ability to capitalize on growth in the housing market.

Negative Factors

Revenue Decline

The drastic decline in revenue growth poses a significant challenge, potentially impacting future earnings and market share. Sustained revenue contraction could undermine the company's ability to invest in growth and maintain competitive positioning.

High Leverage

High leverage indicates significant reliance on debt financing, which can strain cash flow and limit financial flexibility. This poses risks to financial stability, especially in volatile market conditions, and may affect the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow highlights potential liquidity issues, which can hinder the company's ability to meet short-term obligations and invest in strategic initiatives. Sustained cash flow challenges may affect long-term operational and financial health.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 532.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 532.25 is below the 20-day moving average (MA) of 539.45, below the 50-day MA of 558.39, and below the 200-day MA of 570.97, indicating a bearish trend. The MACD of -9.16 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.80 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	₹124.17B	13.48	―	1.39%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GICHSGFIN	65 Neutral	₹9.37B	6.58	―	2.59%	1.07%	-13.63%
LTF	62 Neutral	₹751.91B	27.79	―	0.92%	15.90%	4.53%
REPCOHOME	62 Neutral	₹24.42B	5.33	―	1.66%	8.10%	2.97%
LICHSGFIN	55 Neutral	₹292.77B	5.30	―	1.88%	4.79%	13.08%
FUSION	48 Neutral	₹26.00B	-1.72	―	―	-31.94%	-1096.32%

LIC Housing Finance Ltd Corporate Events

LIC Housing Finance Releases Q2 Financial Call Recording

LIC Housing Finance Limited has uploaded the investor presentation and conference call audio recording for the second quarter of the fiscal year 2025-26 on its website. This disclosure is part of the company’s compliance with SEBI regulations, ensuring transparency and accessibility of financial information to investors and analysts, potentially impacting stakeholder engagement and market perception.

LIC Housing Finance Ltd Reports Steady Q2 FY2025-26 Results

LIC Housing Finance Ltd reported its financial results for the second quarter of the fiscal year 2025-26, showcasing a net profit after tax of Rs. 1353.87 crores and total disbursements of Rs. 16313 crores. The company’s outstanding loan portfolio reached Rs. 311816 crores, with a net interest margin of 2.62%. The results indicate a steady growth in revenue from operations and individual home loan disbursements, despite a decline in project loan disbursements. The financial performance reflects the company’s stable position in the housing finance sector, with implications for continued growth and stakeholder confidence.