Share Market Update – LIC Housing Finance Share Price Target 2025

LIC Housing Finance Share Price Target 2025:- ​LIC Housing Finance Ltd. (LIC HFL), established in 1989 and headquartered in Mumbai, is among India’s leading housing finance companies. As a subsidiary of Life Insurance Corporation of India (LIC), it offers a range of financial products including home loans, loans against property, and construction finance. LIC Housing Finance Share Price on NSE as of 16 April 2025 is 588.60 INR.

LIC Housing Finance Ltd: Current Market Overview

• Open: 567.40
• High: 589.15
• Low: 563.05
• Mkt cap: 32.35KCr
• P/E ratio: 6.29
• Div yield: 1.53%
• 52-wk high: 826.75
• 52-wk low: 483.70

LIC Housing Finance Share Price Chart

LIC Housing Finance Share Price Target 2025 (Prediction)

LIC Housing Finance Shareholding Pattern

• Promoters: 45.24%
• FII: 21.23%
• DII: 21.45%
• Public: 12.08%

Key Factors Affecting LIC Housing Finance Share Price Growth

Here are five key factors that could influence the growth of LIC Housing Finance’s share price target for 2025:​

1. Loan Book Expansion: LIC Housing Finance aims to achieve a 13–15% growth in its loan book for FY25, driven by increased focus on individual home loans and affordable housing segments. ​

2. Affordable Housing Focus: The company is targeting to increase the share of affordable housing loans from the current 10–12% to 20–25% of its total loan portfolio over the next few years, tapping into underpenetrated markets.

3. Technological Advancements: Investments in digital infrastructure and technological upgrades are expected to streamline loan processing and enhance customer service, contributing to operational efficiency.

4. Green Financing Initiatives: Plans to raise funds through green bonds to support environmentally sustainable housing projects align with global trends and may attract environmentally conscious investors.

5. Improved Asset Quality: The company’s asset quality has shown improvement, with a decline in gross non-performing assets (NPAs), indicating better credit risk management and potential for sustained profitability.

Risks and Challenges for LIC Housing Finance Share Price

Here are five key risks and challenges that could impact LIC Housing Finance’s share price target for 2025:​

1. Margin Compression: The company is experiencing pressure on its net interest margins (NIM), which are expected to remain between 2.7% and 2.8% in FY25. This compression is due to rising borrowing costs and increased competition, potentially limiting profitability.

2. Stagnant Loan Growth: LIC Housing Finance has reported subdued growth in its loan book, with a 6.5% year-on-year increase in assets under management (AUM) and a 6.1% quarter-on-quarter decline in disbursements. This stagnation poses a challenge to revenue expansion.

3. Intensifying Competition: The company is facing stiff competition from peers like Bajaj Housing Finance, which has demonstrated superior asset quality and faster growth. This competitive pressure is leading to a loss in market share for LIC Housing Finance.

4. Volatile Interest Rate Environment: Fluctuations in interest rates can impact the company’s cost of funds and lending rates, affecting its net interest income and overall profitability. ​

5. Geographical Disbursement Challenges: State-specific issues, particularly in regions like Bengaluru and Hyderabad, have affected disbursement growth. These localized challenges can hinder the company’s overall performance if not addressed effectively.

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