Industry Profile: Housing is a primary necessity for humans and is a basic indicator of growth and social well-being. Development in the housing sector is not just crucial to economic growth but is also one of the tools for economic development considering the accelerator impact it has on various industries, including construction and infrastructure, the Cement sector including the labor market; it generates demand for supporting industries and leads to the creation of job opportunities. Therefore, the development of housing in a country is a sign of economic welfare. That is why Govt is also supporting the housing sector as it gives the house to someone but infuses Capital and other things in the economy.
For any emerging economy, the development of the housing sector has its challenges. The biggest of these challenges is access to finance. While investment in real estate is an easy candidate for borrowing, real estate lending is more opportunity-based. In India, access to finance for housing needs is predominantly concentrated and focused on higher income groups, as that is the sector where there is formal evidence of income such as salary slips or income-tax returns.
Company Profile: LIC Housing Finance Limited (LIC HFL) is one of India’s largest Housing Finance companies, having its Registered and Corporate office in Mumbai. The Company was incorporated on 19 June 1989 under the Companies Act, 1956. The Company was promoted by the Life Insurance Corporation of India and went public in 1994. The Company’s main objective is to provide long-term financing to individuals for the purchase or construction of a house or flat for residential purposes/repair and renovation of existing flats/houses. The Company also provides finance on existing property for business/personal needs. In addition, it gives loans to professionals for the purchase/construction of Clinics / Nursing Homes / Diagnostic Centres / Office Space, and equipment. The Company also provides long-term finance to persons engaged in the business of construction of houses or flats for residential purposes and to be sold by them.
It has seven regional offices, 21 back offices, and 240 marketing units across India. The Company also has an office in Gulf countries, Kuwait, and Dubai, which serves Gulf countries covering Bahrain, Dubai, Kuwait, Qatar, and Saudi Arabia.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=145 /]
Future prospectus: The Company is the second-largest housing finance company. 2-3 players largely dominate the housing finance market. It is difficult for anyone to beat them. I can’t find a significant flaw that will be an issue. It is a great company.
