LICHSGFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | LICHSGFIN | Market Cap | 26,680 Cr. | Current Price | 484 ₹ | High / Low | 647 ₹ |
| Stock P/E | 4.88 | Book Value | 699 ₹ | Dividend Yield | 2.07 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 519 ₹ | DMA 200 | 550 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.33 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 34.8 | MACD | -7.73 | Volume | 28,93,504 | Avg Vol 1Wk | 21,45,247 |
| Low price | 482 ₹ | High price | 647 ₹ | PEG Ratio | 0.15 | Debt to equity | 7.10 |
| 52w Index | 0.91 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 13.8 |
📊 LICHSGFIN shows moderate potential for swing trading. The RSI at 34.8 indicates oversold conditions, while MACD (-7.73) reflects bearish momentum. The current price (484 ₹) is below both the 50 DMA (519 ₹) and 200 DMA (550 ₹), confirming weakness. Fundamentals such as ROE (16.0%) and EPS (99.4 ₹) are strong, while valuation appears attractive with a very low P/E (4.88) compared to industry P/E (13.8). However, the high debt-to-equity ratio (7.10) adds significant financial risk.
✅ Optimal Entry Price: Around 480–490 ₹ (near current support zone and close to 52-week low of 482 ₹).
📈 Exit Strategy (if already holding): Consider exiting near 515–525 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
Positive
- Very low P/E (4.88) compared to industry P/E (13.8) suggests undervaluation.
- EPS of 99.4 ₹ provides strong earnings support.
- Dividend yield of 2.07% offers attractive income support.
- Quarterly PAT growth from 1,354 Cr. to 1,384 Cr. shows resilience.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects bearish sentiment.
- High debt-to-equity ratio (7.10) adds financial risk.
- ROCE (8.93%) is relatively weak compared to peers.
- Quarterly profit variation of -3.35% highlights earnings pressure.
Company Negative News
- DII holding decreased (-0.33%), showing reduced domestic institutional support.
- Quarterly profit variation negative (-3.35%), reflecting short-term weakness.
Company Positive News
- FII holding increased (+0.19%), showing foreign investor confidence.
- Strong book value of 699 ₹ provides asset backing relative to price.
Industry
- Industry P/E (13.8) is much higher than company P/E (4.88), suggesting LICHSGFIN trades at a discount.
- Sector outlook remains steady, supported by housing finance demand.
Conclusion
⚖️ LICHSGFIN is a cautious swing trade candidate. While valuations are attractive and fundamentals show resilience, technical indicators remain weak and high leverage adds risk. Entry near 480–490 ₹ offers potential upside, while a short-term rebound toward 515–525 ₹ is possible. Traders should maintain strict stop-losses around 470 ₹ to manage risk.