Shares of LIC Housing Finance gained around 1 percent before giving up all of its gains on Monday after Nomura raised the target price on the stock, implying an upside of around 9 percent.
The global research firm maintained a buy call on the stock with an increase in target price to Rs 720 from Rs 660.
The brokerage house said that the third quarter results were operationally in line with the expectations. Having said that, the near term PPOP growth is likely to remain weak. It remains cautious on incremental mortgage spreads.
It also said that large part of the de-rating is done and valuations have bottomed out.
In terms of financials, Nomura has cut profit estimates by 8-10 percent for FY18/19/20, while return on equity (RoE) is expected to be 16 percent for FY19/20.
At 12:26 hrs, the stock is trading at Rs 556.5, down 0.13 percent on the BSE. It has touched an intraday low of Rs 551.25 and an intraday high of Rs 562.05.
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