LICHSGFIN - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Chart Patterns & Trend: LICHSGFIN is trading below both its 50 DMA (554 ₹) and 200 DMA (576 ₹), showing weakness. Price action suggests a reversal from highs and the stock is currently in a corrective phase.

📈 Moving Averages: Current price (533 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 554–576 ₹.

📉 RSI: At 35.2, RSI indicates weak momentum and is close to oversold territory, suggesting potential for a short-term bounce.

📉 MACD: Negative at -9.75, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions but also weak buying interest.

📉 Volume Trends: Current volume (8,76,929) is below average weekly volume (10,65,315), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 510–530 ₹ (near support levels).

🎯 Exit Zone: 554–576 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, oversold with potential short-term bounce but overall bearish bias.

Positive

• Low P/E ratio (5.37) compared to industry average (18.0), suggesting undervaluation.
• EPS at 100 ₹ indicates strong earnings power.
• Dividend yield of 1.89% provides steady shareholder returns.
• ROE at 16.0% reflects solid shareholder value creation.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 35.2 shows weak momentum, not yet oversold enough for reversal signals.
• MACD negative, confirming bearish trend continuation.
• High debt-to-equity ratio (7.10) raises financial risk concerns.
• ROCE at 8.93% is relatively weak compared to peers.

Company Negative News

• Quarterly PAT declined slightly (1,354 Cr vs 1,360 Cr), showing stagnation in earnings.
• FII (-0.08%) and DII (-0.06%) holdings decreased, reflecting reduced institutional confidence.

Company Positive News

• EPS strength and dividend yield support long-term investor confidence.
• Valuation remains attractive compared to industry PE.

Industry

• Industry PE at 18.0 is much higher than LICHSGFIN’s PE (5.37), showing relative undervaluation.
• Housing finance sector demand remains cyclical but supported by real estate growth and government initiatives.

Conclusion

⚖️ LICHSGFIN is currently in a reversal phase with bearish bias. Short-term momentum is weak, with entry opportunities near 510–530 ₹ and resistance around 554–576 ₹. Fundamentally undervalued with strong EPS and dividend yield, but technically cautious due to weak RSI, MACD, and moving averages. Best suited for long-term investors; traders should wait for reversal confirmation before entry.