LIC Housing Finance shares fell as much as 4.1 per cent to Rs 464.2, their lowest since February 27 on NSE and down by 4.21 per cent to Rs 464.70 on BSE in the early trading hours. Later, the share price recovered to day's high of Rs 490, 4.9 points above the previous close of Rs 485.10 on BSE. LIC Housing Finance reported 16.7% rise in Q4 net profit.
Although the share is trading below its 5, 20 and 50-day average, it trades above 100 and 200-day SMA. Additionally, the Finance - Housing sector has also fallen by 2.18 per cent intraday.
On both trading platforms, the volume is above the 5, 10 and 30-day average volume traded, at 1.05 lakh shares on BSE and another 32.36 lakh shares changing hands on NSE.
The housing finance company reported a 16.70 per cent growth in net profit at Rs 693.58 crore for the March quarter of 2018-19. It had posted a standalone net profit of Rs 594.34 crore for the corresponding period of 2017-18 fiscal.
Total income rose to Rs 4,655 crore during the fourth quarter, from Rs 3,887 crore in the same period of the previous fiscal, LIC Housing Finance said.
The board of LIC Housing Finance has also approved dividend at 380 per cent or Rs 7.60 per equity share of Rs 2 each for financial year 2018-19. The dividend will be paid on or after August 28, 2019, it added.
Although cautious on asset quality, global brokerages firm Nomura and Morgan Stanley have maintained positive outlook on the stock.
Nomura quoted, "Recent asset quality trends, coupled with expected stress in construction financing, mean near-term stock catalysts are lacking". According to the firm, the Q4 performance of the company was mixed, with strong NII performance. The valuations remain reasonable at 1.2-1.3x FY21 book, it added.
As per Morgan Stanley, non-housing loans have continued to drive growth, which will be viewed negatively, given the continuous rise in non-performing loans.
"The valuation is cheap, but growth mix and rising NPLs keep us equal-weight on the stock," said Morgan Stanley. Loan growth pick-up and recovery in NPLs are upside risks, while home loan growth slowdown is a downside risk, it added.
Nomura has maintained buy rating on the stock with a target at Rs 500 per share, Morgan Stanley, however, has maintained equal-weight call with a target at Rs 500 per share.
At 2:40 pm, the stock was quoting down 0.02 per cent at Rs 485 on BSE and Rs 485.20, up 0.20 per cent on NSE.
(Edited by Rupa Burman Roy)