LIC Housing Finance Reports Positive Q2 Results, Recommended to Hold by MarketsMOJO

LIC Housing Finance, a largecap company in the housing finance industry, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, LIC Housing Finance has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 4 to 7 in the last three months.

One of the key factors contributing to this positive performance is the company's operating profit (PBDIT) which has been consistently growing in the last five quarters and is currently at its highest at Rs 6,565.66 crore. This trend is expected to continue in the near term.

Another positive aspect is the company's debt-equity ratio, which has been decreasing in the last five half-yearly periods. This indicates that the company is reducing its borrowing in comparison to its equity capital.

LIC Housing Finance has also generated a high operating cash flow of Rs -7,150.98 crore in the last three years, indicating strong cash revenues from its business operations.

The company's operating profit margin has also improved, reaching its highest at 94.64% in the last five quarters, showcasing increased efficiency.

In terms of profitability, LIC Housing Finance has shown a positive trend in its profit before tax (PBT) and profit after tax (PAT) in the last five quarters. The company's earnings per share (EPS) have also increased, indicating higher profitability and value for shareholders.

However, one area of concern is the company's dividend payout ratio (DPR), which has been consistently decreasing in the last five years. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders.

Overall, LIC Housing Finance has shown a strong financial performance in the second quarter of the fiscal year 2024-2025, with positive trends in key areas such as operating profit, cash flow, and profitability. Investors are advised to hold their positions in the stock, as recommended by MarketsMOJO.