LICHSGFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | LICHSGFIN | Market Cap | 27,676 Cr. | Current Price | 503 ₹ | High / Low | 647 ₹ |
| Stock P/E | 5.07 | Book Value | 699 ₹ | Dividend Yield | 1.99 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 520 ₹ | DMA 200 | 551 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.33 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 43.2 | MACD | -6.27 | Volume | 18,78,154 | Avg Vol 1Wk | 20,80,588 |
| Low price | 488 ₹ | High price | 647 ₹ | PEG Ratio | 0.15 | Debt to equity | 7.10 |
| 52w Index | 9.40 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 14.1 |
📈 Chart & Trend: The stock is trading below both its 50 DMA (520 ₹) and 200 DMA (551 ₹), showing medium-term weakness. Current price (503 ₹) is near its 52-week low (488 ₹), reflecting bearish sentiment after a correction from 647 ₹.
📊 Momentum Indicators: RSI at 43.2 indicates weak momentum, nearing oversold territory. MACD at -6.27 confirms bearish bias. Bollinger Bands suggest price leaning toward the lower band, consistent with consolidation under pressure.
🔎 Volume Trends: Current volume (18.7 lakh) is slightly lower than the 1-week average (20.8 lakh), showing reduced participation and lack of strong buying interest.
💡 Entry Zone: 490–505 ₹ (near support at 488 ₹, offering tactical entry)
💡 Exit Zone: 520–540 ₹ (resistance near 520–551 ₹, aligning with DMA levels)
📌 Trend Status: The stock is consolidating with bearish undertones, not yet reversing.
Positive
- Strong ROE (16%) highlights efficient capital use.
- PEG ratio (0.15) suggests growth is undervalued relative to earnings.
- Dividend yield of 1.99% provides income support.
- EPS of 99.4 ₹ reflects solid profitability.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- ROCE (8.93%) is relatively low compared to peers.
- Debt-to-equity ratio of 7.10 is very high, limiting financial flexibility.
- P/E (5.07) is much lower than industry P/E (14.1), suggesting valuation discount but possibly due to risk factors.
Company Negative News
- Quarterly profit variation (-3.35%) indicates earnings slowdown.
- MACD negative and RSI below 50 confirm weak momentum.
- DII holding decreased (-0.33%), showing reduced domestic institutional confidence.
Company Positive News
- FII holding increased (+0.19%), showing foreign investor support.
- Dividend yield of 1.99% provides consistent shareholder returns.
Industry
- Industry P/E (14.1) is higher than company P/E (5.07), suggesting sector peers trade at richer valuations.
- 52-week industry index return of 9.40% shows moderate sector performance.
Conclusion
⚖️ LIC Housing Finance is consolidating with bearish undertones, trading below key moving averages. Fundamentals like ROE, EPS, and dividend yield are supportive, but high debt levels and weak ROCE are concerns. Tactical strategy: accumulate near 490–505 ₹ with strict stop-loss below 488 ₹, and book profits around 520–540 ₹. Sustained recovery requires crossing 520–551 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other housing finance NBFCs? That would highlight whether LIC Housing Finance’s discount valuation is justified compared to sector peers.