LICHSGFIN - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.7

📊 Core Financials & Profitability

Earnings Strength: Quarterly PAT remains stable at ₹1,360 Cr, with a slight QoQ increase. EPS of ₹99.8 is excellent for a ₹593 stock, reflecting strong profitability.

Return Metrics

ROE: 16.0% — robust, indicating efficient equity utilization.

ROCE: 8.93% — decent, though lower due to high leverage.

Debt Profile: Debt-to-equity at 7.47 — high, but expected for a housing finance company.

Dividend Yield: 1.69% — attractive for income-focused investors.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 5.95 Deeply undervalued vs. industry PE of 19.9.

P/B Ratio ~0.9 Trading below book value ₹659 — strong margin of safety.

PEG Ratio 0.18 Extremely attractive — growth is significantly undervalued.

🔍 Conclusion: LIC Housing Finance is trading at a steep discount to intrinsic value. PEG and P/E ratios signal strong upside potential.

🏠 Business Model & Competitive Edge

Core Operations: LIC Housing Finance Ltd. is one of India’s largest housing finance companies, offering home loans, loans against property, and construction finance.

Strategic Strengths

Backed by Life Insurance Corporation of India — brand trust and financial stability.

Strong presence in Tier 2/3 cities and salaried segments.

Institutional confidence: DII holdings up 0.86%.

Growth Outlook

Forecasted 1-year target: ₹661.2; 5-year target: ₹977.5 — ~70% upside

1

.

Analysts expect continued growth driven by India’s housing demand and real estate expansion

2

.

📉 Technicals & Entry Zone

RSI: 65.5 — slightly bullish, nearing overbought.

MACD: −0.72 — mild bearish divergence.

DMA Levels: Price near 50-DMA and 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹570–₹590 — near DMA levels, offering a favorable entry point.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, undervaluation, and sector tailwinds support long-term compounding.

Buy on Dips: Prefer entry near ₹580, especially if RSI cools below 60.

Monitor: Asset quality, loan book growth, and interest rate trends.

You can explore WalletInvestor’s long-term forecast and SharePrice-Target’s multi-year projections for deeper insights. Let me know if you'd like a peer comparison with Can Fin Homes or PNB Housing Finance next.

1

walletinvestor.com

2

shareprice-target.com

Edit in a page