LIC Housing Finance remains the top pick despite persisting issues

Share of developer loans is lower than that of other HFCs, while that of retail loans stands at 80%

LIC Housing Finance, the country’s second largest housing finance company, had a muted September quarter (Q2). The financials reveal some areas of concern, such as increasing developer loan exposure and profitability pressures. 

Notwithstanding these, LIC Housing remains one of the top picks for brokerages, among housing finance companies (HFCs). 

Despite the not-so-great Q2 show, the stock has been in the green since its results a month ago. 

There are three positives that keep LIC Housing a notch above other HFCs and explain the Street’s optimism on the stock.

First, as the sentiment turns unfavourable for financiers with exposure to large