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LICHSGFIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.1

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 4.1

Stock Code LICHSGFIN Market Cap 30,512 Cr. Current Price 555 ₹ High / Low 647 ₹
Stock P/E 5.58 Book Value 699 ₹ Dividend Yield 1.80 % ROCE 8.93 %
ROE 16.0 % Face Value 2.00 ₹ DMA 50 528 ₹ DMA 200 545 ₹
Chg in FII Hold 1.03 % Chg in DII Hold -0.92 % PAT Qtr 1,384 Cr. PAT Prev Qtr 1,354 Cr.
RSI 59.5 MACD 11.4 Volume 7,41,129 Avg Vol 1Wk 14,85,560
Low price 459 ₹ High price 647 ₹ PEG Ratio 0.17 Debt to equity 7.10
52w Index 51.0 % Qtr Profit Var -3.35 % EPS 99.4 ₹ Industry PE 15.1

📈 Chart Patterns: LICHSGFIN is consolidating with mild bullish bias, trading above 50 DMA but facing resistance near 560–570 ₹.

📊 Moving Averages: Price above 50 DMA (528 ₹) and slightly above 200 DMA (545 ₹), confirming short-term strength with medium-term stability.

📉 RSI: At 59.5, RSI suggests bullish momentum but not yet overbought.

📈 MACD: Positive at 11.4, signaling bullish momentum.

📊 Bollinger Bands: Price near mid-to-upper band, reflecting consolidation with breakout potential.

📉 Volume Trends: Current volume (7.4L) below weekly average (14.8L), showing weaker participation and requiring confirmation.

🔑 Short-Term Momentum Signals: Bullish signals supported by MACD and RSI, but weak volume tempers conviction.

🎯 Entry Zone: 540–555 ₹ near DMA support.

🎯 Exit Zone: 580–600 ₹ near resistance cluster.

📌 Trend Status: Consolidating with mild bullish bias.

Positive

  • Attractive P/E of 5.58 compared to industry PE of 15.1.
  • Strong EPS at 99.4 ₹ supports valuation strength.
  • Dividend yield of 1.80% adds investor appeal.
  • FII holdings increased (+1.03%).
  • Price trading above both 50 DMA and 200 DMA confirms momentum.

Limitation

  • High debt-to-equity ratio (7.10) raises leverage concerns.
  • Quarterly profit variation negative (-3.35%).
  • Volume below average, limiting breakout strength.
  • ROCE modest at 8.93%.

Company Negative News

  • Quarterly PAT decline (1,354 Cr. → 1,384 Cr. with -3.35% variation).
  • DII holdings decreased (-0.92%).
  • High leverage risk due to debt-to-equity ratio.

Company Positive News

  • EPS remains strong at 99.4 ₹.
  • Dividend yield of 1.80% supports investor confidence.
  • FII inflows highlight foreign investor support.

Industry

  • Industry PE at 15.1, significantly higher than LICHSGFIN’s P/E of 5.58, suggesting undervaluation.
  • Sector momentum moderate with 52-week index at 51.0%.

Conclusion

LICHSGFIN is consolidating with mild bullish signals supported by MACD, RSI, and attractive valuation. Entry near 540–555 ₹ offers favorable positioning, while exits around 580–600 ₹ capture resistance levels. Strong fundamentals and undervaluation support optimism, but high leverage and weak volume participation warrant cautious trading with disciplined risk management.

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