LICHSGFIN - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.9

📈 LIC Housing Finance offers strong valuation and earnings stability, but technical resistance and low volume suggest a moderately favorable swing setup.

🎯 Optimal Entry Price: ₹565–₹575

🚪 Exit Target (if already holding): ₹595–₹610

🔍 Positive

• 📈 P/E of 5.72 is significantly below industry average (17.7), indicating undervaluation.
• 📈 EPS of ₹100 supports strong earnings visibility.
• 📈 PEG ratio of 0.17 suggests attractive valuation relative to growth.
• 📈 ROE of 16.0% reflects solid profitability.
• 📈 MACD at 1.41 indicates early bullish momentum.
• 📈 Dividend yield of 1.74% adds value for income-focused investors.

⚠️ Limitation

• 📉 RSI at 49.4 is neutral, lacking strong directional bias.
• 📉 Price below 200 DMA (₹587), showing long-term resistance.
• 📉 Volume below weekly average (8.05L vs 23.75L), indicating reduced momentum.
• 📉 ROCE of 8.93% is modest for a financial institution.
• 📉 Debt-to-equity ratio of 7.10 is high, typical for housing finance but worth monitoring.

📉 Company Negative News

• 📉 FII and DII holdings declined slightly, showing cautious institutional sentiment.
• 📉 PAT declined marginally QoQ from ₹1,360 Cr to ₹1,354 Cr.

📈 Company Positive News

• 📈 Strong EPS and PEG ratio support valuation strength.
• 📈 Stable PAT and ROE indicate consistent performance.

🏠 Industry

• 🏠 Housing finance benefits from rising urbanization, government housing schemes, and low interest rates.
• 📉 Risks include interest rate volatility, regulatory changes, and asset quality concerns.

✅ Conclusion

• 📈 LIC Housing Finance is a moderately strong swing trade candidate with undervaluation and stable earnings.
• 🎯 Entry near ₹565–₹575 with exit around ₹595–₹610 is recommended for short-term traders.
• 📊 Long-term investors should monitor asset quality and institutional flows for sustained upside.

I can also compare LICHSGFIN with peers like HDFC Ltd or PNB Housing to help you identify stronger swing setups in the housing finance space.