LIC Housing Finance Limited

“LIC Housing Finance is a mediocre spread-lending business trapped in structural competitive decline, governed by rotating PSU management with zero skin in the game, generating returns near cost of equity while retaining earnings it cannot deploy productively. At 0.73x book, the stock is cheap for a reason — and cheapness without a catalyst or improving fundamentals is not an investment thesis. Expected returns of 8-10% annualized fall well short of India equity hurdle rates, while better-positioned Indian financials offer superior compounding at comparable or lower risk. Capital is better deployed elsewhere.”