LIC Housing Finance is trading higher by 2% at Rs 284, extending its previous day’s 2% gains, after reporting a healthy growth of 17% year-on-year (yoy) in net profit at Rs 370 crore for the quarter ended March 31, 2014 (Q4). The housing finance company had a profit of Rs 316 crore in the year-ago quarter.
Net interest income (NII) grew 15.7% to Rs 533 crore in the quarter under review from Rs 461 crore in the year-ago period, LIC Housing Finance said in a statement.
The management suggested a strong growth in sanctions in Q4FY2014 and plans to grow the loan book by 20% in FY2015.
The company has posted strong performance mainly due to a steady growth in the NII and a reversal of provisions on teaser loans. In addition, the margins rose 24BPS QoQ to 2.4% and asset quality showed an improvement on a sequential basis, an analyst at Sharekhan said in a client note.
The analyst has maintained a 'Buy' rating on the stock with a target price of Rs 335 owing to its sound asset quality and strong return ratios (RoAs of 1.6% and RoE of about 20%).
The stock opened at Rs 280 and touched a 52-week high of Rs 285 on the NSE. The stock touched a record high of Rs 300 in January 2013.
At 1130 hours, a combined 1.85 million shares changed hands on the counter on the NSE and BSE.
Net interest income (NII) grew 15.7% to Rs 533 crore in the quarter under review from Rs 461 crore in the year-ago period, LIC Housing Finance said in a statement.
The management suggested a strong growth in sanctions in Q4FY2014 and plans to grow the loan book by 20% in FY2015.
The company has posted strong performance mainly due to a steady growth in the NII and a reversal of provisions on teaser loans. In addition, the margins rose 24BPS QoQ to 2.4% and asset quality showed an improvement on a sequential basis, an analyst at Sharekhan said in a client note.
The analyst has maintained a 'Buy' rating on the stock with a target price of Rs 335 owing to its sound asset quality and strong return ratios (RoAs of 1.6% and RoE of about 20%).
The stock opened at Rs 280 and touched a 52-week high of Rs 285 on the NSE. The stock touched a record high of Rs 300 in January 2013.
At 1130 hours, a combined 1.85 million shares changed hands on the counter on the NSE and BSE.
