LICHSGFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | LICHSGFIN | Market Cap | 27,919 Cr. | Current Price | 508 ₹ | High / Low | 647 ₹ |
| Stock P/E | 5.11 | Book Value | 699 ₹ | Dividend Yield | 1.97 % | ROCE | 8.93 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 535 ₹ | DMA 200 | 564 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.33 % | PAT Qtr | 1,384 Cr. | PAT Prev Qtr | 1,354 Cr. |
| RSI | 39.6 | MACD | -6.11 | Volume | 17,50,287 | Avg Vol 1Wk | 14,12,994 |
| Low price | 484 ₹ | High price | 647 ₹ | PEG Ratio | 0.15 | Debt to equity | 7.10 |
| 52w Index | 14.8 % | Qtr Profit Var | -3.35 % | EPS | 99.4 ₹ | Industry PE | 16.7 |
📊 Chart Patterns & Trend: The stock is trading at ₹508, below both its 50 DMA (₹535) and 200 DMA (₹564), reflecting bearish pressure. Price action is near the lower end of its 52-week range (₹484–₹647), suggesting weak momentum with consolidation signs.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹535 would be the first bullish signal, while sustaining above ₹564 would confirm reversal.
📉 RSI: At 39.6, RSI is in the lower neutral zone, indicating weak momentum but not yet oversold. A move above 45–50 would signal strength.
📉 MACD: Negative at -6.11, showing bearish divergence. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹525–₹540.
📊 Volume Trends: Current volume (17.5 Lakh) is higher than average weekly volume (14.1 Lakh), indicating active participation and possible accumulation at lower levels.
🎯 Entry Zone: ₹495–₹510 (near support and lower Bollinger band).
🎯 Exit Zone: ₹540–₹560 (near resistance and moving averages).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹535–₹564.
Positive
- Low P/E ratio (5.11) compared to industry PE (16.7), suggesting undervaluation.
- Strong ROE (16%) highlights efficient shareholder returns.
- Dividend yield of 1.97% provides steady income for investors.
- EPS at ₹99.4 remains robust compared to peers.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- ROCE at 8.93% is relatively modest compared to sector leaders.
- Debt-to-equity ratio of 7.10 is very high, raising leverage concerns.
Company Negative News
- Quarterly PAT declined to ₹1,384 Cr from ₹1,354 Cr, showing earnings pressure.
- Quarterly profit variation (-3.35%) indicates decline compared to prior year.
- DII holdings decreased (-0.33%), reflecting weaker domestic institutional support.
Company Positive News
- FII holdings increased (+0.19%), showing foreign investor confidence.
- Volume activity above average suggests accumulation at lower levels.
Industry
- Industry PE at 16.7 is much higher than the stock’s P/E, suggesting sector trades at more expensive valuations.
- LICHSGFIN trades at a discount but faces challenges due to high leverage.
Conclusion
⚖️ LICHSGFIN is currently in a bearish phase, trading below key moving averages with weak momentum indicators. However, low valuation and strong ROE provide potential for a rebound. Entry near ₹495–₹510 offers favorable risk-reward, while exits around ₹540–₹560 align with resistance. Sustained buying and a move above ₹535–₹564 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.