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LIC Housing Finance Limited (LICHSGFIN) Fair Value & Analysis

Financial Services · IN · Market cap ₹304B

LH LIC Housing Finance Limited LICHSGFIN · NSE
Price₹500.00
Fair Value₹1,004
Upside+100.8%
Quality52/100
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Healthy Growth
Highly profitable · 65.8% net margin
High debt · generates free cash flow
1.80% dividend yield
Mixed vs. peers (7/14)
Wide moat 68/100
Evidence: High Range ₹753.00 – ₹1,255 Share as image

Fair value as of: Aug 13, 2026

From 9 valuation models · updated today

Fair value updated Aug 13, 2026, revised from ₹1,010 to ₹1,004 (−0.6%) since Aug 8, 2026. Share price −9.1% over the past month.

A solid business, screening 101% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹753.00). The market is more pessimistic than our downside scenario.
  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹791.64 ₹276.16 Fair Value ₹1,004 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹276.16 – ₹791.64 · fair‑value band ₹753.00 – ₹1,255 · the ₹500.00 price screens below the ₹1,004 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

LIC Housing Finance Limited (LICHSGFIN) currently trades at ₹500.00, while our model-based Fair Value estimate is ₹1,004, implying the stock looks roughly 100.8% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, LIC Housing Finance Limited generated revenue of ₹85.2B at a net margin of 65.8%. Revenue grew 4.4% year over year. It earns a return on equity of 14.4%. Net debt stands at ₹2.6T. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹753.00 (bear case) to ₹1,255 (bull case); at ₹500.00, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -35% fair-value upside, at 101%, LICHSGFIN screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹736.57 ₹967.33 ₹2,890 76
Gordon GGM ₹96.19 ₹210.00 ₹353.33 70
P/E Multiple ₹993.26 ₹1,324 ₹1,655 63
All 9 models by family
DCF Models
Owner Earnings ₹717.54 31
Earnings-Based
Graham-Dodd ₹692.74 ₹3,532 ₹4,880 54
Lynch FV ₹961.28 ₹1,373 ₹1,785 50
Dividend Discount
Gordon GGM ₹96.19 ₹210.00 ₹353.33 70
DDM Multi-Stage ₹96.19 ₹172.02 ₹218.85 61
Multiples
P/E Multiple ₹993.26 ₹1,324 ₹1,655 63
P/B Multiple ₹790.83 ₹1,054 ₹1,318 55
Asset-Based
NCAV (Graham) ₹376.58 ₹504.62 ₹753.17 50
Economic Profit
Residual Income ₹736.57 ₹967.33 ₹2,890 76

Widest divergence: Earnings-Based (₹1,373) versus Dividend Discount (₹172.02). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹85.2B
Revenue growth (YoY) +4.4%
Net margin 65.8%
Return on equity 14.4%
Free cash flow ₹53.3B FY2026
P/E ratio 4.9
More key figures
Operating margin 81.5%
EPS (TTM) ₹101.85
Dividend yield 1.8%
EPS growth (YoY) +8.6%
Net debt ₹2.6T FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 46 · Market factors (momentum, volatility) 47

Profitability 33
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 1
Balance sheet, leverage, solvency risk
Investment 66
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

LIC Housing Finance Limited, a housing finance company, provides loans for the purchase, construction, repair, and renovation of houses/buildings in India.

Full company description

LIC Housing Finance Limited, a housing finance company, provides loans for the purchase, construction, repair, and renovation of houses/buildings in India. The company offers public, green, and corporate deposits; home loans to residents and non-residents Indians, as well as to pensioners; plot loans, home improvement and renovation, construction, and home extension loans; refinance; construction finance and term loans for builders and developers; and loans for staff quarters and other lines of credit for corporates. It also provides loans against properties for companies and individuals; loans against rental securitization; and loans to professionals. In addition, the company develops, establishes, and operates assisted living community centers for elderly citizens; manages, advises, and administers private equity funds, including venture capital and alternate investment funds; offers asset management and trusteeship services; and markets housing loan, life and general insurance products, mutual funds, fixed deposits, and credit cards. LIC Housing Finance Limited was incorporated in 1989 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

LIC Housing Finance Limited reported revenue of ₹288B in FY2026 versus ₹198B in FY2022, a compound +9.8%/yr. Reported net income was ₹56.0B in FY2026, compounding +25.1%/yr from FY2022.

Growth Quality 86/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹288B
Latest YoY
+3.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.2%
Revenue +9.8%/yr
FY22 ₹198B
FY23 ₹225B
FY24 ₹271B
FY25 ₹277B
FY26 ₹288B
Net income +25.1%/yr
FY22 ₹22.9B
FY23 ₹28.9B
FY24 ₹47.6B
FY25 ₹54.4B
FY26 ₹56.0B
Character of growth · EPS growth decomposed (2015-2026) +12.5 % p.a.
Revenue per share +8.5 pp

of which total revenue +9.5 pp · buybacks/dilution −1.0 pp

EBIT margin +1.9 pp
Tax rate +2.1 pp
Residual (interest, one-offs) +0.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "LIC Housing Finance Limited Fair Value". https://www.fairvalue-calculator.com/stock/LICHSGFIN

Peer Group

Mortgage Finance · 91 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside +101% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 2% · Above median
Net margin (TTM) 66% · Top 25%
Operating margin (TTM) 81% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 1.8% · Below median
Debt / equity 6.33× · Higher than median

Valuation Multiples vs Mortgage Finance median · lower = cheaper

P/E (TTM) 4.9× · Cheaper than 75% of peers
P/B 0.73× · Pricier than median
P/S (TTM) 3.57× · Pricier than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 40.3× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 22 · sector 79
PAST 58 · sector 55
HEALTH 0 · sector 0
DIVIDEND 36 · sector 80

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is LIC Housing Finance Limited (LICHSGFIN) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,004 versus a price of ₹500.00, about +101% (undervalued).
What is the fair value of LICHSGFIN?
Our model-based fair value for LIC Housing Finance Limited is ₹1,004 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹500.00.
What is the quality score of LICHSGFIN?
LIC Housing Finance Limited has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LIC Housing Finance Limited (LICHSGFIN)?
LIC Housing Finance Limited reported trailing-twelve-month revenue of about ₹85.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of LICHSGFIN?
The net profit margin of LIC Housing Finance Limited is about 65.8%, meaning it keeps roughly 65.8% of revenue as net income. Based on the latest reported figures.
Does LIC Housing Finance Limited pay a dividend?
LIC Housing Finance Limited currently shows a dividend yield of about 1.80% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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