LIC Housing Finance tanks 7% day after reporting Q4 results

The company reported 5.5 per cent growth in Q4 net at Rs 1,180 crore, backed by a 20.8 per cent surge in total income.

Shares of LIC Housing Finance plunged over 7 per cent to a low of Rs 366.80 on the BSE in Wednesday's intra-day trades, a day after reporting its March quarter results. 

At 10:55 AM, the stock was down 6 per cent at Rs 371.50, with trades of around 3 lakh shares as against the two-week average volume of around 82,000 shares on the BSE. Meanwhile, the S&P BSE Sensex had declined 230 points or 0.4 per cent to 61,702.

For the quarter ended March 2023, the company's standalone net profit rose by 5.5 per cent to Rs 1,180.28 crore when compared with Rs 1,118.64 crore in the quarter ended March 2022. Total income also increased by 20.8 per cent from Rs 5,308.59 crore to Rs 6,415.17 crore.

The company's net NPAs (Non Performing Assets) declined from 2.7 per cent to 2.5 per cent in the quarter under review. 

Further the company's board also declared a 425 per cent dividend, i.e. Rs 8.5 per equity share, having face value of Rs 2 each.

"The LIC Housing Finance Q4FY23 PAT (Profit After Tax) beat expectations led by better NII/NIM and lower opex," Gaurav Jani, Research Analyst at Prabhudas Lilladher said in a note.

In the last eight weeks, the stock had rallied over 24 per cent. In comparision, the benchmark index had gained around 9 per cent.

The stock is also traded in the futures & options segment on the NSE. As per the options data, the highest open interest (OI) for the May contract Calls stands at Rs 400, with notable build-up seen in Rs 380 and Rs 390 strike prices. Thus, indicating likely resistance around these levels for this series.

On the other hand, higest OI among Puts is seen at Rs 370 followed Rs 360 and Rs 350.