Several market analysts have said that the shares of the LIC Housing Finance is expected to fall in the coming weeks as the public sector unit has posted a lower than expected profit in the second quarter mainly due to weaker net interest income and provisions burden.

Morgan Stanley said that the shares of the LIC Housing Finance will fall more than the benchmark index of the stock exchange in India in the coming 15 days. The corporation has recorded a 58% drop in net profit in the second quarter while its income grew 37.4% to Rs. 1511.47 crore.

"We expect revenue growth at LIC Housing Finance will continue to be under pressure in the coming months as loan growth will likely moderate owing to rates remaining higher for longer," said the research firm.

Others analysts are also advising investors to sell LIC Housing Finance below Rs 208 as they expected that shares may plunge as low as Rs 170-175 in coming days. The company's trailing 12-month EPS was at Rs 21.47 per share, while the stock's price-to-earnings (P/E) ratio was 10.55.

The price-to-book value of the company was 2.58 and its dividend yield was recorded at 1.55%. The shares of the corporation were trading at Rs. 222.90 at the time of the reporting on the Bombay Stock Exchange today. (IANS)