Home / Markets / Stock Markets /  LIC Housing Finance share surges 14% on strong Q3 earnings. Should you buy?
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Stock market today: On account of strong third quarter earnings report by LIC Housing Finance, the mortgage loan company stock has surged over 13 per cent in early morning deals. LIC Housing Finance share price today opened with an upside gap of around 13.50 per shares and went on to hit its intraday high of 394.20 apiece levels, logging around 14 per cent intraday rise today. However, stock market experts are still bullish on the counter and they are expecting it to hit 440 levels in immediate short term.

According to stock market experts, this rise in LIC Housing Finance share price is because of the strong Q3FY22 results announced yesterday. The mortgage loan company has reported 6 per cent jump in its profit after tax (PAT) at 767.33 crore for recently ended December 2021 quarter. The mortgage lender company had reported 727.04 crore PAT in previous fiscal. Experts went on to add that these strong Q3 earnings could become possible due to rise in its loan book and decline in provisioning.

Speaking on the reason for rise in LIC Housing Finance shares; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "LIC Housing Finance share price is skyrocketing today as the mortgage lender company has reported strong Q3 earning yesterday. It has reported at 767.33 crore PAT in Q3FY22 against Q3FY21 PAT of 727.04 crore. They have reported a considerable drop in provision from 665 crore in Q2FY22 to 355 crore in Q3FY22 that has led to rise in their income. Apart from this, company's individual loan book has grown from 2,04,444 crore to 2,29,321 crore, logging around 12 per cent rise on year-on-year basis." He said that one can buy the counter and keep it for long term as housing finance companies may continue to report better quarterly earnings in upcoming quarters as well.

Expecting breakout in the counter in near term; Sumeet Bagadia, Executive Director at Choice Broking said, "LIC Housing Finance shares are trading near to its 52-week low that makes it an ideal buy at discounted price. Apart from this, stock is looking highly bullish on chart pattern and it may soon give breakout at 400 levels on closing basis. After this breakout, the stock is expected to become highly bullish and may go up to 425 per share levels in immediate short term. However, one can hold the counter for short term target of 440 as well maintaining stop loss at 360." He said that short term traders can buy the counter at current levels for the above-mentioned targets maintaining stop loss at 360 levels.

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