Shares of LIC Housing Finance fell 6% in early trading the day after the company reported lacklustre fourth-quarter results. At 10:39 am on May 17, the stock was down 5.93%, trading at Rs 371 on the NSE.

The housing finance company reported a 5.5% rise in its consolidated net profit to Rs 1,180.3 crore compared to Rs 1,118.6 crore a year earlier.

The company’s board of directors has recommended a dividend of Rs 8.50 per share or Rs 2 per share for FY23, the company said in a statement. The board also declared that the dividend on equity will be paid on or after the company’s Annual General Meeting (AGM).

The company’s net interest income (NII) rose 22.1% to Rs 1,990.3 crore in the March quarter, compared to Rs 1,630 crore a year earlier. Its revenue jumped 21.04% to Rs 6,415.11 crore from Rs 5,299.66 crore last year.

The company’s total revenue for the quarter ended March stood at Rs 6,415.17 crore compared to Rs 5,308.9 crore in the same period last year, an increase of 20.83%.

Morgan Stanley has an “underweight” rating on LIC Housing Finance. According to them, the sharp improvement in loan spreads resulted in NII exceeding 19%. Morgan Stanley has a target price of Rs 320 per share.

However, CLSA has a “buy” rating on LIC Housing Finance. According to them, the company’s net interest margin (NIM) widened by 50 basis points to 2.9%. That was the highest level in 24 quarters. CLSA has a target price of Rs 550 per share.