Date of Analysis: 03rd June 2018
Trade Entry : Long Term Investment
Type of Trade: Long term trade
Reason to take or to not to take or keep it under observation:
Analysis based on monthly chart
1. There was lot of selling and sentiment in the month of May 2018.
2. Monthly candle of May 2018 has engulfed previous three candles. Which is a strong sentiment
3. Area to watch out is 402 to 382 and If it breaks 382 then 307 to 280
4. Also it has been observed that price reverses just after breaking 50 and current situation price has just broken 50 . So we can watch and see how it goes for next couple of months.
5. In past stock has mimicked Nifties movement but since October 2017 it is going in opposite direction of Nifty . If Nifty reverses then this stock will plunge further.
6. Delivery percentage is not good
Past quarterly financial trend is positive (Even though the financial trend is positive stock has plunged)
Quality is Good and Valuation is attractive. Hence, it seems to be a good buy for long term.
While Price (-35.45%) has fallen, (3.03%) have increased over the last year.
In past one year return on Sensex and the sector is 13.13% and 14.04%. However, stock has returned (negative) - 35.45%
Shareholding : FII holdings have decreased by -1.14% in Mar 18
Shareholding : DII holdings have decreased by -5.43% in Mar 18
Net Sales: YOY growth in quarter ended March 2018 is 7.08% vs 12.21% in March 2017
Stand along Net Profit: YOY Growth in quarter ended Mar 2018 is 1.92% vs 18.12% in March 2017. Probably the reason for the stock to plunge further.
Debt to equity ratio is very high as compared to peers. Most of the peers have half or even lower debt equity ratio than LIC Housing except few.
Earning reports is expected to release on 30th July 2018. That would be the right time to analyses the stock again after checking the report.
Wall street is on this stock. Average target is approx. 623
Indian investors are also on this stock. Average target is approx. 677
Brief Summary :
Fundamentals looks good.
An investor needs to wait for couple of months and analyses the entry after the earning reports is released.
This is just my view and not an investment advise. Please consult your investment advisor before investing in these or other stocks.