LIC HFL Gains 68% From 52W-Low After FIIs Raise Stake In Q2: Buy/Sell Or Hold?

One of the largest housing finance companies (HFCs) in India, LIC Housing Finance, has seen a substantial rise in its shares, returning an impressive 63% from its one-year low. The stock reached a 52-week-high of Rs 544.00 on (08/12/2023) and a 52-week-low of Rs 315.45 on (28/03/2023), indicating that at the current market price of Rs 533.05, the stock has gained 68.98% in 9 months from its 52-week-low.

LIC HFL Share Price Target

"We recommend a BUY on the company at current market price of Rs532 or decline up to Rs507 with the closing stop loss of Rs400 for a target of Rs708-Rs885 with a horizon of 9-12 months," said Mr. Aditya Gaggar, Director of Progressive Shares.

LIC HFC Investment Rationale

According to Aditya Gaggar, Director of Progressive Shares, here are the investment rationales to buy the shares of LIC HFC.

LIC Housing Finance Ltd has given a breakout from a Symmetrical Triangle Formation.

RSI oscillator has given a trendline breakout way earlier and recently, completed its pullback move.

MACD has given a positive crossover while a reading of 44.5 in ADX indicates the presence of a strong uptrend.
The stock price is quoting well above all the leading Moving Averages.

LIC HFL Financials

In Q2FY24, the company's net profit rose by nearly four times to Rs 1,188 crore, while its net interest income (NII) climbed by 83% to Rs 2,107 crore. Non-performing assets (NPAs) for the lender surged to 4.3 per cent in Q2FY24 from 4.9 per cent in Q2FY23. From 2.83 per cent to 2.59% per cent, net NPA decreased. Due to steady credit costs, LIC Housing's NIMs increased to 3.04 per cent from 1.78 per cent at the same time last year.

LIC HFL Shareholding Pattern

During Q2FY24, the company registered promoters' shareholding of 45.24%, FIIs stake of 21.21%, DIIs stake of 21.51%, and public stake of 12.03%. FII/FPI raised holdings from 17.15% in the June 2023 quarter to 21.21% in the September 2023 quarter; mutual funds holdings dropped from 18.66% to 15.26%; and institutional investors increased holdings from 42.18% in the Q1FY24 to 42.72% in the Q2FY24, according to the LIC HFC shareholding pattern that is available on Trendlyne. The promoters' holdings remained unchanged at 45.24% in the September 2023 quarter.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.