LICHSGFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | LICHSGFIN | Market Cap | 27,989 Cr. | Current Price | 510 ₹ | High / Low | 647 ₹ |
| Stock P/E | 5.12 | Book Value | 699 ₹ | Dividend Yield | 1.96 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 532 ₹ | DMA 200 | 563 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.33 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 43.1 | MACD | -7.48 | Volume | 24,48,566 | Avg Vol 1Wk | 22,33,899 |
| Low price | 484 ₹ | High price | 647 ₹ | PEG Ratio | 0.15 | Debt to equity | 7.10 |
| 52w Index | 15.9 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 16.7 |
📊 LICHSGFIN shows good potential for swing trading. The RSI at 43.1 indicates neutrality leaning towards oversold, while MACD at -7.48 reflects mild bearish momentum. The PEG ratio of 0.15 suggests undervaluation relative to growth, and the very low P/E of 5.12 compared to industry average (16.7) highlights attractive valuation. Current price (510 ₹) is below both 50 DMA (532 ₹) and 200 DMA (563 ₹), showing short-term weakness but offering entry near support levels. Fundamentals such as ROE (16.0%) and EPS (99.4 ₹) remain strong, though high leverage is a concern.
✅ Optimal Entry Price: 500–510 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 540–560 ₹ (near 200 DMA resistance). Trail stop-loss near 485 ₹ to protect downside.
Positive
- 📈 Attractive valuation with P/E of 5.12 vs industry average of 16.7.
- 💹 EPS of 99.4 ₹ supports strong earnings.
- 📊 PAT growth from 1,354 Cr. to 1,384 Cr. shows incremental improvement.
- 💰 Dividend yield of 1.96% adds investor appeal.
- 📊 Strong trading volume (24.4L vs avg 22.3L) indicates active investor participation.
Limitation
- ⚠️ ROCE (8.93%) is modest compared to peers.
- 📉 Debt-to-equity ratio of 7.10 is very high, adding leverage risk.
- 📉 Current price below both 50 DMA and 200 DMA reflects medium-term weakness.
- 📉 RSI near 40 shows weak momentum.
Company Negative News
- 📉 Decline in DII holding (-0.33%) signals weaker domestic institutional support.
- ⚠️ Quarterly profit variation (-3.35%) raises concerns about earnings consistency.
Company Positive News
- 📈 Increase in FII holding (+0.19%) reflects foreign investor confidence.
- 💹 PAT improved quarter-on-quarter, showing earnings growth.
Industry
- 🏭 Industry P/E at 16.7 is much higher than LICHSGFIN’s 5.12, suggesting undervaluation compared to peers.
- 📊 Sector momentum remains modest with 52-week index gain of 15.9%.
Conclusion
🔎 LICHSGFIN earns a swing trade rating of 4.0. Entry near 500–510 ₹ provides margin of safety, while exit around 540–560 ₹ aligns with resistance levels. Attractive valuation, strong EPS, and foreign investor support back the trade, but high leverage and weak technicals require cautious position sizing and disciplined stop-loss management.