⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
LICHSGFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | LICHSGFIN | Market Cap | 27,676 Cr. | Current Price | 503 ₹ | High / Low | 647 ₹ |
| Stock P/E | 5.07 | Book Value | 699 ₹ | Dividend Yield | 1.99 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 520 ₹ | DMA 200 | 551 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.33 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 43.2 | MACD | -6.27 | Volume | 18,78,154 | Avg Vol 1Wk | 20,80,588 |
| Low price | 488 ₹ | High price | 647 ₹ | PEG Ratio | 0.15 | Debt to equity | 7.10 |
| 52w Index | 9.40 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 14.1 |
📊 Core Financials
- Revenue & Profitability: PAT rose slightly (₹1,354 Cr → ₹1,384 Cr), showing stability. EPS at ₹99.4 reflects strong earnings capacity.
- Margins: ROE at 16% is healthy, while ROCE at 8.93% highlights average efficiency.
- Debt: Debt-to-equity ratio of 7.10 indicates high leverage, typical for housing finance companies.
- Cash Flow: Operating performance is steady, though leverage impacts flexibility.
💹 Valuation Indicators
- P/E: 5.07, well below industry average (14.1), suggesting undervaluation.
- P/B: 0.72 (₹503 / ₹699), reflecting deep value relative to book value.
- PEG Ratio: 0.15, highly attractive as growth is undervalued compared to earnings.
- Intrinsic Value: Current price ₹503 is undervalued; favorable entry closer to ₹490–510.
🏢 Business Model & Competitive Advantage
- Strong presence in housing finance with backing from LIC brand.
- Focus on retail housing loans supports consistent demand.
- High leverage is standard for housing finance but requires prudent risk management.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹490–510 range offers attractive entry.
- Long-Term Holding: Suitable for value investors seeking exposure to housing finance growth, though leverage warrants caution.
✅ Positive
- Low P/E (5.07) compared to industry average (14.1), indicating undervaluation.
- PEG ratio (0.15) suggests strong undervaluation relative to growth.
- Dividend yield of 1.99% adds to shareholder returns.
- FII holdings increased by 0.19%, showing foreign investor confidence.
⚠️ Limitation
- ROCE (8.93%) is modest compared to industry leaders.
- Debt-to-equity ratio of 7.10 indicates high leverage.
- Stock trading below DMA 50 (₹520) and DMA 200 (₹551), showing weak momentum.
📉 Company Negative News
- DII holdings decreased by 0.33%, showing reduced domestic institutional support.
- Technical indicators (RSI 43.2, MACD -6.27) suggest bearish momentum.
- Quarterly profit variation (-3.35%) indicates earnings pressure.
📈 Company Positive News
- Sequential PAT growth from ₹1,354 Cr to ₹1,384 Cr.
- FII holdings increased by 0.19%, reflecting foreign investor confidence.
- Dividend yield of 1.99% supports investor returns.
🏭 Industry
- Industry P/E at 14.1, much higher than company’s P/E (5.07), indicating undervaluation.
- Housing finance sector remains resilient with strong demand for retail housing loans.
🔎 Conclusion
- LIC Housing Finance demonstrates strong fundamentals with undervaluation relative to peers.
- High leverage and modest ROCE require monitoring.
- Entry zone between ₹490–510 is favorable for long-term investors.
- Overall, a fundamentally stable company with growth prospects, offering value opportunity despite short-term momentum weakness.