LICHSGFIN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Here’s a detailed analysis of LIC Housing Finance Ltd (LICHSGFIN)

📊 Core Financials

Profitability: ROE of 16.0% is strong, while ROCE at 8.93% is modest — typical for housing finance firms.

Quarterly PAT: Slight dip from ₹1,435 Cr to ₹1,373 Cr, but still robust. YoY profit growth is up 27% — impressive.

Debt Profile: Debt-to-equity ratio of 7.45 is high, but expected in the housing finance sector. Needs monitoring.

Cash Flow: Not disclosed, but consistent earnings and dividend payout suggest healthy operational cash flow.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 6.05 Deeply undervalued vs industry PE of 20.0

P/B Ratio ~0.90 Trading below book value — attractive

PEG Ratio 0.18 Extremely low — strong growth at low valuation

EPS ₹98.9 High earnings per share — solid base

🧠 Business Model & Competitive Edge

Core Focus: Specializes in housing loans for individuals, corporates, and professionals — stable demand.

Parent Support: Backed by LIC — adds trust and brand strength.

Branch Network: Extensive reach across India, especially in Tier 2/3 cities — helps drive retail growth.

📈 Technical & Sentiment Indicators

RSI (42.6): Slightly bearish — nearing oversold zone.

MACD (-0.39): Weak momentum — consolidation phase.

DMA Levels: Trading below 50-DMA and 200-DMA — short-term weakness.

🏁 Entry Zone & Long-Term View

Entry Zone: ₹580–₹600 — near support levels and undervaluation zone.

Holding Guidance: Strong long-term candidate due to low valuation, high EPS, and solid ROE. Monitor asset quality and interest rate trends.

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