Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

I possess investment research experience across asset classes and geographies, acquired at Investcorp (New York) and Howe & Rusling (Rochester). At Investcorp, an alternative asset manager, I was part of an investment team managing >$1bn in discretionary client assets. I was also a member of investment recommendation, monitoring, cross-asset strategy and macro outlook committees that met periodically for investment decisions and top-down views. At Howe & Rusling, a long-only asset manager, I helped cover US large-cap equity investments across sectors for growth and income focused portfolios as well as assisted in managing a US small-cap growth focused equity portfolio. I possess an MBA in finance and corporate accounting from University of Rochester in US, a CFA Charter, and an Engineering degree from Indian Institute of Technology Bombay in India.  

My current focus is L/S equity fundamental research across market cap and sectors with an eye on corporate governance and forensic accounting. I am currently based in India and my current coverage universe is biased towards India.

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Regulatory Disclosure: Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details -
Address: A-602, Titanium Business Park, Makarba, Ahmedabad - 380051 |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289

Compliance/Grievance Officer -
Name: Ankit Agrawal |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289
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Equity L/S Analyst | Forensic Accounting | India

LIC Housing Finance – Unmitigated Disaster

LICHF: OTR 2.0 Upended Q2FY22 Earnings, But the Worst Is Behind Us

LIC Housing Finance – No NCOs Whatsoever?

LIC Housing Finance – This Is How It Should Be Done

LIC Housing Finance – Doing The Right Thing

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/lic-housing-finance-ltd" target="_blank" data-smartkarma-citation="entities:15667:1" rel="noopener">LIC Housing Finance (LICHF IN)</a> reported weak earnings for Q1FY22. It reported heightened impairment of 830cr leading to significant decline in YoY profitability. This follows from significantly high provisioning of 977cr done last quarter. Together, LICHF has taken provisioning of over 1900cr in last two quarters which is just under 1% of AUM. This compares with average credit cost of 0.2% of AUM in the past decade and a prior peak of 0.51% in FY11. The heightened provisioning resulted in Q1FY22 PAT decline to 151cr from 824cr YoY and 406cr QoQ. The QoQ decline in PAT was led by compression in NIM (declined to 2.20% from 2.32% QoQ) and one-time charge to employee expense of around INR 125cr. However, it is always the darkest before the dawn. We anticipate significant recoveries and up-gradation in asset quality going ahead as the environment normalizes.</p>

LIC Housing Finance (LICHF IN) reported weak earnings for Q1FY22. It reported heightened impairment of 830cr leading to significant decline in YoY profitability. This follows from significantly high provisioning of 977cr done last quarter. Together, LICHF has taken provisioning of over 1900cr in last two quarters which is just under 1% of AUM. This compares with average credit cost of 0.2% of AUM in the past decade and a prior peak of 0.51% in FY11. The heightened provisioning resulted in Q1FY22 PAT decline to 151cr from 824cr YoY and 406cr QoQ. The QoQ decline in PAT was led by compression in NIM (declined to 2.20% from 2.32% QoQ) and one-time charge to employee expense of around INR 125cr. However, it is always the darkest before the dawn. We anticipate significant recoveries and up-gradation in asset quality going ahead as the environment normalizes.

LICHF: Poor Show, But It Is Always the Darkest Before the Dawn