LICI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Rating: 4.6

Here's a deep dive into Life Insurance Corporation of India (LICI)

🧮 Core Financials

Revenue & Profit Growth

Quarterly PAT surged from ₹11,009 Cr. to ₹19,039 Cr. — a 37.6% jump, signaling strong operational momentum.

Profitability

ROE: 46.0%, ROCE: 53.5% — both exceptionally high, indicating efficient capital use.

Debt Profile

Debt-to-equity: 0.00 — virtually debt-free, a major strength.

Cash Flow

While not explicitly stated, high ROE/ROCE and zero debt imply robust internal cash generation.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 11.8 Deeply undervalued vs. industry PE of 73.9

P/B Ratio ~4.47 Fair, given strong profitability

PEG Ratio 0.09 Extremely low — suggests undervalued growth

EPS ₹76.4 Strong earnings per share

🏢 Business Model & Competitive Edge

Dominant Market Position: LIC is India’s largest life insurer with decades of trust and reach.

Government Backing: Adds stability and credibility.

Diversified Segments: Life, pension, annuity, health, and linked businesses.

Recent Moves: Expansion into bond derivatives and new savings plans

1

2

.

📈 Technical & Sentiment Indicators

RSI: 39.2 — nearing oversold territory.

MACD: -8.69 — bearish momentum, but could signal reversal.

Volume: Below average, suggesting consolidation.

DMA 50 vs. 200: Price is hovering near both — neutral zone.

🎯 Entry Zone & Long-Term View

Suggested Entry: ₹880–₹900 range — near support and DMA levels.

Target Range: ₹1,170–₹1,500 over long term, based on historical highs and growth potential

1

.

Holding View: Strong fundamentals, undervaluation, and zero debt make it a solid long-term hold.

Would you like a comparison with other insurers or a technical chart breakdown next?

1

in.tradingview.com

2

stockanalysis.com

Edit in a page