LIC Housing Finance Ltd.
Banking · NSE
52-week range
₹459 – ₹635
From 52w high
-8.5%
RSI (14)
66.9
vs SMA 50 / 200
↑ 50 · ↑ 200
LIC Housing Finance (LICHSGFIN), a housing-focused NBFC, trades at a trailing PE of 5.80 with a profit margin of 65.14% on its existing loan book, yet has posted negative revenue and earnings CAGRs of -2% and -2.6% respectively over 5 years. The stock closed at 578.85, sitting above both its 50-DMA (528) and 200-DMA (547) after a 12.3% 3-month rally, though it remains 8.89% below its 52-week high and essentially flat over 12 months (-1.88%).
- ✓Lowest PE in the tracked peer group at 5.80, versus Axis Bank at 14.90, HDFC Bank at 17.22, Bajaj Finance at 31.04, and Bajaj Finserv at 30.16 — a significant valuation discount on a trailing earnings basis.
- ✓Profit margin of 65.14% indicates the core lending spread business retains substantial net income relative to revenue, even during a contraction phase.
- ✓Dividend yield of 1.72% provides an income component; forward PE of 5.61 is marginally below the trailing figure, suggesting modest near-term earnings stability in analyst estimates.
- ✓Short-term price momentum is positive: above both the 50-DMA and 200-DMA, with a 12.3% gain over 3 months and nearest support levels identified at 512, 503, and 490.
- ✗FCF has been positive in 0 of tracked years with a rising debt trend; debt-to-equity of 679.25 means the entire loan book is funded by incremental borrowing, leaving the company exposed to any adverse shift in wholesale funding costs or credit markets.
- ✗Revenue and earnings CAGRs have been negative for 5 consecutive years (-2% and -2.6% respectively), indicating a sustained contraction in business scale rather than a one-off event.
- ✗Quality score of 30 out of 100 ranks 4th of 6 in the peer group; ROE data is unavailable, and ROE exceeded 15% in only 1 of the tracked years, reflecting weak and inconsistent return generation on equity.
- ✗The untimely demise of the newly appointed COO introduces a leadership gap at a senior operational level at a time when the business is navigating a multi-year earnings decline.
- ·The most recent material news item is the death of LICHSGFIN's newly appointed COO (as reported on 10 May 2026), which may prompt management commentary on succession in upcoming investor communications.
- ·Quarterly earnings result pages for Q1 and Q4 2026 appeared in news flow, but substantive result numbers were not captured in available headlines.
- ·With only 3 news articles in the sample, the overall neutral sentiment label (2 neutral, 1 negative) carries limited statistical weight and should not be treated as a comprehensive read on market perception.
- ?Does the 65% profit margin on a contracting loan book reflect genuine pricing power in the housing finance segment, or is it a function of a static legacy portfolio that will compress as older high-yield loans mature?
- ?How does LICHSGFIN's cost of funds compare to banking peers such as HDFC Bank and Axis Bank, and what is the net interest margin sensitivity to a 50-basis-point shift in wholesale borrowing rates given a D/E of 679?
- ?Is the multi-year contraction in revenue and earnings a deliberate de-risking of the book (for example, exiting developer loans) or a structural loss of market share to banks and newer HFCs?
- ?What does the succession plan for the COO role look like, and does the current leadership bench have the operational depth to maintain underwriting standards and collections during a transition?
PE
5.8
Forward PE
5.6
ROE
—
Profit margin
+65.1%
D/E
679.25
Dividend yield
+1.7%
Quality score
30/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
0/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.