Tuesday, July 22, 2008

LIC Housing Finance capitalises on diversification buzz

LIC Housing Finance rose 1.55% to Rs 261.35 at 15:08 IST on BSE on reports set to foray into the venture capital arena and intends to start a Rs 500 crore real estate fund by the end of this financial year.
The stock hit a high of Rs 272.60 and a low of Rs 256 so far during the day. The stock had a 52-week high of Rs 402.90 on 11 December 2007 and a 52-week low of Rs 174.50 on 23 August 2007.
The company has an equity capital of Rs 84.99 crore. Face value per share is Rs 10.
The current price of Rs 261.35 discounts its Q1 June 2008 annualised EPS of Rs 49.29, by a PE multiple of 5.3.
Based on the response to the real estate fund, the company will decide on whether it will expand its presence in the venture capital space, reports suggest.
The company’s net profit rose 124.2% to Rs 104.66 crore on 34.7% rise in operating income to Rs 622.02 crore in Q1 June 2008 over Q1 June 2007. The company announced the result yesterday, 21 July 2008.
The company provides long term finance to individuals for purchase/construction/repair and renovation of new/ existing flats/houses. The company also provides finance on existing property for business/personal needs and gives loans to professionals for purchase/construction of clinics/nursing homes/diagnostic centres / office space.

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