LIC Housing Finance Ltd's shares fell as much as 4.1 per cent to Rs 464.2, its lowest since February 27.
Recent asset quality trends, coupled with expected stress in construction financing and mean near-term stock catalysts are lacking, said finanical services company Nomura.
Financial services company, Morgan Stanley, said that non-housing loans will continue to drive growth, which will be viewed negatively, given the continuous rise in non-performing loans (NPLs).
Both Morgan Stanley and Nomura retain the “buy” rating with the price target at Rs 500.
The stock was down 0.9 per cent this year as of the last close.