LIC Housing Finance stock tanks over 10% on disappointing Q2 results: Buy, Sell or Hold? Check strategy and targets

LIC Housing Finance Share Price: Investors in the LIC Housing Finance shares did not take company’s weak September quarter results kindly and the stock received a severe beating on opening. The stock was down 11 per cent on the NSE in the opening trade. 

The company posted a 23 per cent drop in its standalone net profit for the July-September quarter at Rs 305 crore against an estimated Rs 900 cr. The Net Interest Income (NII) fell by 0.4 per cent YoY to Rs 1162.9 crore for the reporting quarter versus an Rs 1167.4 crore it posted in the corresponding quarter of FY22. The Gross NPAs (GNPA) stood at 4.91 per cent which was down sequentially from 4.96 per cent. The Net NPAs (NNPA) was at 2.83 per cent versus 3.1 per cent in Q1FY23. 

Around 10:30 am, LIC Housing scrip was trading at 361.75, off day’s lows. It was lower by Rs 38.75 per share or 9.68 per cent. 

However, experts remain divided on this stock. This is what the opine.

Market Expert Ambarish Baliga said that the earnings were much lower than street’s estimates and were not on the expected lines and which has led to the stock hitting lower circuit. He expects further correction from current levels. 

Baliga suggest is to avoid this stock and no buying is recommended even on declines.  

On Traders Diary, the Zee Business research team recommended a Sell on this counter. The stock is not trading significantly below its target price of Rs 385.  

Meanwhile, brokerage firm CLSA maintains a buy on this stock, though it has revised the target downwards to Rs 480 from Rs 515.

Jefferies has a 'Buy' recommendation with a price target of Rs 515. 

As per the data available on the NSE, over 1.7 crore shares were trading around this time. 

The stock hit its 52-week high of Rs 443.60 in 15 September 2022 and has since then seen a 23 per cent correction as on date. The 52-week low is Rs 291 on 20 June 2022.  

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The stock has moved with a 153-point range during this period.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)