Mac on LIC Hsg ; O-P, TP Rs 690

Reported 11% YoY PAT growth, ahead of estimates, largely driven by a Rs0.9bn provision write-back. PPOP was in line (vs MQe) and declined 2% YoY, while cost-to-income ratio increased 134bp YoY. Margins were stable, though AUM remained weak, flattish QoQ and up 5% YoY. RoA was broadly steady at 1.9%. Loan growth remains subdued, disbursals growth moderate Asset quality remains healthy LICHF remains a value pick at 0.5x FY28 P/BV, inexpensive for a franchise capable of sustaining a 1.6% RoA.

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