LIC Housing Finance Ltd (LICHSGFIN) AI Stock Analysis

• Market Cap: ₹281.49B
• 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: ₹524.00 ▲(5.43% 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

Very strong reported net and EBIT margins indicate the business currently converts interest and fee income into earnings efficiently. High margins provide a buffer to absorb credit costs or pricing pressure and support internal capital generation for operations and reinvestment over months.

LIC Association & Distribution Reach

Association with LIC and a broad national distribution network are durable competitive advantages: they enhance credibility, aid customer acquisition, and support sustained loan origination scale across regions, helping preserve market share and growth potential over the medium term.

Diversified Interest & Fee Income

Revenue mix from home loans, investment income from government securities, and fee income creates multiple cash generation channels. This diversification reduces dependence on a single revenue stream, smoothing earnings and supporting liquidity across business cycles over several months.

Negative Factors

Very High Leverage

A D/E of 7.22 signals heavy reliance on debt funding, limiting financial flexibility. High leverage raises refinancing and interest-rate vulnerability, increases solvency risk if asset performance deteriorates, and can constrain capacity to lend or invest without deleveraging.

Negative Operating & Free Cash Flow

Negative operating and free cash flows indicate the company is not generating sufficient cash from core activities, forcing reliance on external funding or asset sales. This weak cash generation elevates liquidity risk and limits ability to service debt or sustain growth over the medium term.

Sharp Revenue Contraction

A more than 60% revenue drop materially impairs scale economics and raises questions about origination volume or portfolio run-off. Sustained revenue contraction can erode margins, weaken credit metrics, and force strategic adjustments that impact medium-term earnings and competitiveness.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 523.91, below the 50-day MA of 525.38, and below the 200-day MA of 561.96, indicating a bearish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, 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	₹110.27B	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	₹8.12B	5.34	―	2.54%	1.07%	-13.63%
LTF	62 Neutral	₹680.48B	26.76	―	0.91%	15.90%	4.53%
REPCOHOME	62 Neutral	₹22.58B	5.62	―	1.61%	8.10%	2.97%
LICHSGFIN	55 Neutral	₹281.49B	5.31	―	1.87%	4.79%	13.08%
FUSION	48 Neutral	₹28.84B	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.