LICI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | LICI | Market Cap | 5,04,672 Cr. | Current Price | 798 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.52 | Book Value | 223 ₹ | Dividend Yield | 1.50 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 811 ₹ | DMA 200 | 848 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | -0.06 % | PAT Qtr | 12,958 Cr. | PAT Prev Qtr | 10,053 Cr. |
| RSI | 47.0 | MACD | 4.58 | Volume | 12,88,616 | Avg Vol 1Wk | 13,16,307 |
| Low price | 722 ₹ | High price | 980 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.00 |
| 52w Index | 29.6 % | Qtr Profit Var | 17.2 % | EPS | 83.8 ₹ | Industry PE | 70.0 |
📊 LIC (LICI) demonstrates strong fundamentals with a market cap of ₹5,04,672 Cr. and current price of ₹798, trading below its 200 DMA (₹848). Efficiency metrics are exceptional — ROE at 46.0% and ROCE at 53.4% — reflecting robust profitability. Valuation remains attractive with a P/E of 9.52 compared to the industry average of 70.0, supported by a very low PEG ratio (0.07). Debt-to-equity is 0.00, highlighting a debt-free balance sheet. EPS at ₹83.8 is strong, and quarterly PAT growth (+17.2%) indicates consistent earnings momentum. Dividend yield at 1.50% adds shareholder value. Institutional flows are mixed, with FIIs slightly positive (+0.11%) and DIIs marginally negative (-0.06%).
💡 Entry Zone: ₹770–₹790 (near support levels)
📈 Long-Term Holding: Highly suitable for long-term investors given strong fundamentals, attractive valuation, and consistent profitability. Accumulation on dips below ₹800 offers excellent value.
✅ Positive
- Exceptional ROE (46.0%) and ROCE (53.4%) highlight strong efficiency
- Attractive valuation (P/E 9.52 vs industry 70.0)
- Debt-free balance sheet (Debt-to-equity 0.00)
- Strong EPS (₹83.8) supports earnings visibility
- Dividend yield of 1.50% adds investor returns
⚠️ Limitation
- Stock trading below DMA 200 (₹848), showing technical weakness
- Modest institutional participation with DIIs reducing (-0.06%)
- Price well below 52-week high (₹980), reflecting resistance zones
📉 Company Negative News
- Stock under pressure near long-term moving averages
- Marginal decline in DII holdings
📈 Company Positive News
- Quarterly PAT growth (+17.2%) from ₹10,053 Cr → ₹12,958 Cr
- FIIs increased holdings (+0.11%)
- Strong dividend payout policy supports investor confidence
🏭 Industry
- Insurance sector trades at higher P/E (70.0), making LIC significantly undervalued
- Sector outlook remains stable with strong demand for insurance and financial services
🔎 Conclusion
LIC offers a compelling investment case with strong profitability, debt-free balance sheet, and attractive valuation. Entry near ₹770–₹790 provides a favorable risk-reward setup. Long-term investors can accumulate confidently, as fundamentals and sector positioning support sustained growth and value creation.