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LIC Housing Fin scrip spurts by 35 per cent
FE Investor Bureau
New Delhi, Mar 12: LIC Housing Finance has bucked the trend by rising in a falling market. The scrip has shot up by 35 per cent from Rs 29 to Rs 39 in just six trading sessions. Daily volumes, too, are in the range of 3-4 lakh shares. On Wednesday, for example, the counter witnessed 4.77 lakh shares changing hands. The previous day, the traded volume was around 4.08 lakh shares.The spurt in scrip price is suprising as the market continues to give a poor discounting to finance companies following a squeeze on their spreads and margins. However, with LIC backing the company, investors seem to be quite confident of investing in the scrip. The company's strong financials also find support with investors. For the year-ended March 1997, the company earned a net profit of Rs 63.38 crore on an operating income of Rs 409 crore. The dividend of 20 per cent on this low-priced stock is also seen as a positive sign by the market. This year, too, the company is expect to post good results. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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