Stock market analyst Ashwani Gujral of stockmechanics.com maintained ‘Buy’ rating on LIC Housing Finance Ltd to achieve a short term target between Rs 700 – Rs 750.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 618.

Today (July 06), the shares of the company opened at Rs 650, up Rs 15.85, on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 62.65 & 10.66 respectively. The share price has seen a 52-week high of Rs 660 and a low of Rs 151 on BSE.

Mr. Gujral said that the stock is ready to hit a new 52-week in the coming days. So, the investors must buy the stock to reap good returns.

It is discovered that LIC Housing Finance, is looking at attracting an associate for its Rs 5 billion realty venture capital (VC) fund that it aims to introduce by end-September.

The LICHFL said that the partner would be from India.

It added that that since it will cater to Indian market, they are looking for an Indian partner.    

LIC Housing Finance, on June 13, said it is planning to generate up to Rs 150 billion of arrears during the current financial year via options including commercial paper (CP), non-convertible debentures (NCDs) and external commercial borrowings (ECBs).

Moreover, LICHFL is also looking to lift up additional funds via qualified institutional placement (QIP).

The company’s board at its meeting held on Jun. 01, 2009, sanctioned further issue of 10 million equity shares of Rs 10 each through placement with qualified institutional investors (QIP).