LIC Housing Finance Ltd (LICHSGFIN) AI Stock Analysis

• Market Cap: ₹315.65B
• Dividend Yield: 1.82%
• Average Volume (3M): 58.15K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.68
• 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: 3.82% 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 ▲(6.37% 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 Ltd (LICHSGFIN) is a leading housing finance company in India, primarily engaged in providing home loans, loans against property, and other financial solutions related to housing. As a subsidiary of Life Insurance Corporation of India, LICHSGFIN leverages its parent company's extensive network and brand reputation to cater to a diverse customer base, including individuals and developers. The company operates in the residential, commercial, and retail sectors, offering products tailored to meet the needs of various segments of the housing market.

How the Company Makes Money

LICHSGFIN generates revenue primarily through the interest earned on loans provided to customers. The company offers a range of home loan products, including fixed-rate and floating-rate loans, which contribute significantly to its income. Additionally, LICHSGFIN earns fees from processing loan applications and offers insurance products in collaboration with its parent company, LIC. The company also benefits from cross-selling opportunities and partnerships with real estate developers, which enhance its market reach and customer acquisition. The interest spread, which is the difference between the interest rates at which it borrows and lends, is a critical factor in its profitability.

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: 549.05
• 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 549.05 is below the 20-day moving average (MA) of 563.31, below the 50-day MA of 570.40, and below the 200-day MA of 570.87, indicating a bearish trend. The MACD of -6.33 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 26.18 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	₹114.71B	12.45	―	1.36%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GICHSGFIN	65 Neutral	₹9.26B	6.51	―	2.63%	1.07%	-13.63%
LTF	62 Neutral	₹700.46B	25.90	―	0.88%	15.90%	4.53%
REPCOHOME	62 Neutral	₹28.12B	6.06	―	1.55%	8.10%	2.97%
LICHSGFIN	55 Neutral	₹315.65B	5.72	―	1.82%	4.79%	13.08%
FUSION	48 Neutral	₹28.83B	-1.47	―	―	-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.

LIC Housing Finance Ltd’s 36th AGM Sees All Resolutions Passed

LIC Housing Finance Ltd successfully conducted its 36th Annual General Meeting on August 29, 2025, via video conferencing. All resolutions proposed during the meeting were passed with the requisite majority, reflecting strong shareholder support and potentially positive implications for the company’s strategic initiatives and stakeholder confidence.

LIC Housing Finance Ltd Appoints New Joint Statutory Auditors

LIC Housing Finance Ltd has announced a change in its auditors, appointing M/s Shah Gupta & Co. and M/s Batliboi & Purohit as joint statutory auditors. This change follows the completion of the tenure of the previous auditors and is in compliance with regulatory requirements. The new auditors will serve from the conclusion of the 36th Annual General Meeting until the 39th AGM in 2028, subject to annual eligibility assessments. This appointment is a strategic move to ensure continued compliance and transparency in financial reporting, which is crucial for maintaining stakeholder trust and industry credibility.

LIC Housing Finance Ltd Appoints New Secretarial Auditors

LIC Housing Finance Ltd has announced a change in its secretarial auditors, appointing M/s. BNP & Associates for a five-year term starting from the fiscal year 2025-26. This strategic move, approved by the Board of Directors, is in compliance with SEBI regulations and aims to enhance the company’s governance framework. The appointment underscores LIC Housing Finance’s commitment to maintaining robust corporate governance practices, potentially impacting its operational transparency and stakeholder trust positively.