LIC Housing Finance shares in focus as board approves Rs 1.23 lakh crore borrowing plan for FY26

Synopsis

LIC Housing Finance's board approved a borrowing plan of Rs 1.23 lakh crore for FY26 through various loans and bonds. The company reported a 23.1% increase in Q3 net profit to Rs 1,432 crore. Shares closed at Rs 521.2 on Wednesday, and analysts recommend a 'Buy' with an average target price of Rs 717.

LIC Housing Finance shares will be in focus on Thursday after the company’s board approved a borrowing plan of Rs 1.23 lakh crore for FY26 through loans, bond issuances, and other instruments.

The board, based on the audit committee’s recommendation, approved a total borrowing budget of Rs 1,22,500 crore for the next financial year, the company said in a stock exchange filing.

The borrowing will be executed via loans and/or the issuance of redeemable non-convertible debentures, zero-coupon bonds, subordinate debt, upper Tier II bonds, commercial paper, external commercial borrowings, foreign currency bonds, securitization via private placement, public issues, and refinancing from NHB, among other modes.

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LIC Housing Finance Q3 earnings

The company reported a net profit of Rs 1,432 crore in Q3, a 23.1% increase from Rs 1,163 crore in the same period last year.

However, NII came in at Rs 1,997.1 crore, marking a decline of 4.8% from Rs 2,097 crore in Q3 FY24. The company reported a write-back of Rs 43.98 crore, compared to an impairment expense of Rs 435.83 crore in the year-ago period.

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LIC Housing Finance shares target price

As per Trendlyne data, the average target price of the stock is Rs 717, which shows an upside of 38% from the current market prices. The consensus recommendation from 25 analysts for the stock is a 'Buy'.

LIC Housing Finance shares performance

On Wednesday, LIC Housing Finance shares closed at Rs 521.2, up 3.5% on the BSE, while the benchmark Sensex surged 1%. The stock has declined 26% in the last six months but gained 45% in the last two years. The company’s market capitalization stands at Rs 28,669 crore.

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