The shares of LIC Housing Finance (LICHF) surged today on the back of impressive growth in the first quarter (Q1), dealers said.
The stock of the housing finance player jumped to an intra-day high of Rs 78 before settling at Rs 77, up 1.18 per cent on the Bombay Stock Exchange (BSE). About 51,204 shares changed hands on the BSE and National Stock Exchange combined.
The stock has come off from a recent high in a weak market. From Rs 87.50 on 21 June, the scrip has fallen 11 per cent to the current Rs 77.80. It, however, still rules higher than its recent low. At today's close, the stock is up 26 per cent from the low of Rs 61.50 on 21 May 2002.
The housing finance major has been witnessing a modest growth in profit over recent years. As per latest results, LICHF registered a jump of 32 per cent to Rs 33.59 crore in net profit for the first quarter ended 30 June 2002.
During the quarter, total income grew 12 per cent to Rs 219.07 crore, of which income from operations climbed 12 per cent to Rs 218.91 crore, while other income fell 33 per cent to Rs 0.16 crore.
The main business of the company is to provide loans for purchase or construction of residential houses.
LICHF continues to cater to the varied housing needs of the public by offering financial assistance under different individual schemes including a scheme for expatriates, scheme for purchase of house/flat, plot/sites and scheme for home improvement. It also has a scheme for financing for construction/repairs/renovation of clinics/diagnostic centres/nursing homes of practicing doctors. It also offers consumer loans to make 'a house a home'.
The company is the second biggest market player for housing loans with a market share of around 18 per cent, dealers said.
During the current year (2002-03), LICHF plans to sanction over 87,000 individual loans for Rs 2,800 crore (up 32 per cent) and disburse over 83,000 loans for Rs 2,650 crore (up 31 per cent). Also with a view to reduce cost of funds, the company plans to tap the bond market for raising funds.
