Shares of LIC Housing Finance Ltd fell as much as 7.5 per cent to Rs 530.30, their lowest since August 3 as the June-quarter net interest margin fell 7.1 per cent to 2.34 per cent.
“Though LIC Housing Finance's Q1FY19 PAT came optically in line, operating metrics trends were below expectations, reflected in softer growth, NIMs and asset quality pressure,”according to Edelweiss.
“We believe that LICHF would continue to disappoint on earnings growth in FY18-20 as we expect EPS CAGR (compound annual growth rate) of just ~5% over FY18-20 with RoE declining to ~15% by FY20,” according to Ambit Capital.
About 3.7 million shares changed hands in early trading vs 30-day average volume of 1.72 million. The stock had gone up 1.7 per cent this year as of last close.