LICHSGFIN - Investment Analysis

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

📊 Investment Analysis: LIC Housing Finance Ltd (LICHSGFIN)

Investment Rating: 4.0

LICHSGFIN offers deep value and strong profitability, but its high leverage and muted technicals suggest a cautious approach. It’s a compelling long-term candidate for value investors who can stomach volatility and monitor debt metrics closely.

✅ Why It’s a Candidate for Long-Term Investment

Valuation

P/E (6.05) vs Industry P/E (20.0) → significantly undervalued.

PEG Ratio (0.18) → exceptional value relative to earnings growth.

Price-to-Book (≈0.90) → trading below book value, a classic deep-value signal.

Profitability & Growth

ROE (16.0%) and ROCE (8.93%) → solid returns, especially ROE.

EPS (₹98.9) → strong earnings base.

Quarterly PAT Growth (27%) → robust momentum.

Dividend & Stability

Dividend Yield (1.50%) → decent income stream.

Promoter Holding (45.2%) → stable ownership.

🎯 Ideal Entry Price Zone

Based on technical and valuation trends

Entry Zone: ₹570–₹590

₹590 is near current price and below 50 DMA (₹607), offering value.

₹484 is the 52-week low — a deep accumulation zone if sentiment weakens.

Avoid entry above ₹620 unless bullish breakout confirms.

🧭 Exit Strategy / Holding Period

If you already hold LICHSGFIN

Holding Period: Minimum 3–5 years to benefit from valuation re-rating and ROE compounding.

Exit Strategy

Partial Exit near ₹750–₹795** if price approaches 52-week high and valuation normalizes.

Full Exit if ROCE stagnates below 8% or debt-to-equity worsens beyond 8.0.

Trailing Stop Loss: Consider placing it around ₹560 to protect downside.

⚠️ Risks to Monitor

Debt-to-Equity (7.45) → very high leverage; watch for deleveraging or refinancing risks.

RSI (42.6) and MACD (-0.39) → bearish to neutral technical signals.

FII Holding Decline (-1.30%) → waning institutional interest.

Would you like a peer comparison with other housing finance companies or a dividend-focused alternative in the same sector?

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