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Is LIC Housing the Dark Horse of India’s Mortgage Market?

Is LIC Housing the Dark Horse of India’s Mortgage Market?

A Deep Dive into LIC Housing’s Turnaround & Competitive Moat

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Harsh Vora
Apr 24, 2025
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Is LIC Housing the Dark Horse of India’s Mortgage Market?
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With a loan book nearing ₹3 lakh crore, over 3 million customers, and a legacy closely tied to the LIC, LICHFL offers a case study in scale, structure, and strategic recalibration.

This report explores LICHFL’s position through a detailed 8-part framework covering:

  • Its business model, retail loan book composition, and regional/customer mix

  • Growth performance across AUM, margins, and return ratios—benchmarked against peers

  • Trends in asset quality, provisioning, and collection efficiency post-COVID

  • A look at the capital structure, funding sources, and ALM management.

  • LICHFL’s competitive positioning among pure-play HFCs like Can Fin, Aavas, and PNB Housing

  • The potential impact of interest rate easing in 2025 on margins and loan demand

  • Current and historical valuations, including ROE-based fair value modeling

  • A risk map and scenario analysis covering growth, credit quality, and funding sensitivity

Remember, of course, that none of this is a stock recommendation. Instead, it provides a structured lens through which we can understand the company’s trajectory, peer context, and operational contours within India’s evolving housing finance landscape.

1. Business Model & Loan Book Analysis

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