LICHSGFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | LICHSGFIN | Market Cap | 30,512 Cr. | Current Price | 555 ₹ | High / Low | 647 ₹ |
| Stock P/E | 5.58 | Book Value | 699 ₹ | Dividend Yield | 1.80 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 528 ₹ | DMA 200 | 545 ₹ |
| Chg in FII Hold | 1.03 % | Chg in DII Hold | -0.92 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 59.5 | MACD | 11.4 | Volume | 7,41,129 | Avg Vol 1Wk | 14,85,560 |
| Low price | 459 ₹ | High price | 647 ₹ | PEG Ratio | 0.17 | Debt to equity | 7.10 |
| 52w Index | 51.0 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 15.1 |
Entry Zone: 540 ₹ – 560 ₹ (near 50 & 200 DMA support)
Exit Guidance: 620 ₹ – 640 ₹ (resistance zone)
Holding View: Attractive long-term holding with caution on leverage
Positive
- Very attractive P/E of 5.58 compared to industry PE of 15.1 — undervalued
- Strong ROE (16%) highlights efficient shareholder returns
- PEG ratio of 0.17 indicates deep undervaluation relative to growth
- EPS of 99.4 ₹ provides robust earnings base
- Dividend yield of 1.80% adds shareholder value
- FII holdings increased (+1.03%), signaling foreign investor confidence
Limitation
- High debt-to-equity ratio (7.10) raises significant leverage concerns
- ROCE of 8.93% reflects modest capital efficiency
- Quarterly profit variation (-3.35%) shows earnings inconsistency
- DII holdings decreased (-0.92%), showing reduced domestic institutional support
- Volume (7,41,129) below weekly average (14,85,560) indicates weaker participation
Company Negative News
- Sequential profit decline impacting sentiment
- High leverage compared to peers may limit flexibility
- Reduced domestic institutional participation
Company Positive News
- Strong EPS and dividend yield reinforce investor confidence
- Foreign institutional accumulation supports long-term stability
- Technical indicators (RSI 59.5, MACD 11.4) show bullish momentum
Industry
- Industry PE at 15.1, much higher than LICHSGFIN’s 5.58 — stock trades at discount
- Sector momentum strong with 52-week index return of 51%
Conclusion
LIC Housing Finance demonstrates strong undervaluation with attractive P/E, PEG ratio, and robust EPS, supported by foreign institutional buying. However, high leverage, modest ROCE, and weak profit variation limit upside potential. Entry near 540–560 ₹ offers a favorable setup, with exits around 620–640 ₹ advisable. Long-term holding remains attractive if earnings stabilize and debt levels improve, though cautious monitoring of leverage and institutional flows is essential.
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