LIC Housing Finance Ltd - Safe Buy

CMP : 200


LIC Housing Finance Limited provides housing finance services to individuals for purchase, construction, repair and renovation of new or existing flats and houses. The Company also provides finance on existing property for business, personal needs and gives loans to professionals for purchase, construction of clinics, nursing homes, diagnostic centers, and office space throughout India.

Due to loan scams, LIC tanked over 20%. Fact is, its individual employees misbehavior and not a threat to the company itself. No need to say about the brand image of LIC. Fundamentally, the scam doesn't change anything. At a P/E of below 12 and NPM at 16%, its a great buy at current levels. Buy, accumulate and hold.