SBILIFE - Fundamental Analysis

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

Fundamental Rating: 3.7

Let’s unpack SBI Life Insurance (SBILIFE) — a leading player in India’s life insurance space with strong brand equity, respectable returns, and steady institutional interest 📈🛡️

📘 Core Financials & Performance

Profit Profile

PAT declined from ₹814 Cr. to ₹594 Cr. — a quarterly dip yet shows YoY growth of 14.4%, suggesting long-term progress.

EPS: ₹24.8 supports consistent profitability.

ROE: 15.1%, ROCE: 16.9% — solid for the insurance sector, although not extraordinary.

Balance Sheet Strength

Debt-Free — provides flexibility and low financial risk.

Dividend Yield: 0.15% — minimal, aligned with reinvestment approach common in insurers.

💸 Valuation Indicators

Metric Value Implication

P/E Ratio 72.4 Very high; priced to perfection

P/B Ratio ~10.1 Rich valuation vs. asset base

PEG Ratio 4.25 Overvalued compared to earnings growth

Intrinsic Value ~₹1,600–₹1,700 Slightly overpriced at current levels

🟥 Current valuation demands high growth consistency and margin stability.

🏦 Business Model & Moat

Offers comprehensive life insurance products — protection, savings, ULIPs — backed by the SBI brand, giving it instant trust and customer reach.

Benefits from India’s underpenetrated life insurance market, especially among tier-2/3 consumers.

Institutional confidence: FII holding up (+0.46%), DII trim (-0.43%) — may reflect tactical rebalancing, not lack of faith.

📉 Technical Picture & Entry Range

RSI: 45.0 — neutral; no strong price momentum.

MACD: +4.25 — bullish trend emerging.

Price sitting near DMA 50 (₹1,795) and above DMA 200 (₹1,662) — signs of consolidation.

🎯 Recommended Entry Zone

Ideal accumulation: ₹1,700–₹1,760

Opportunistic long-term entry: ₹1,600–₹1,680, on macro pullbacks

⏳ Long-Term Holding View

✅ Solid ROE, debt-free, brand advantage via SBI

⚠️ High valuation; earnings growth must justify lofty multiples

🟢 Well-suited for long-term conservative portfolios, particularly those anchored in India’s financial services sector

Want me to size SBILIFE up against peers like HDFC Life, ICICI Prudential, or Max Life to evaluate who’s offering better growth, margins, and valuation edge? I can whip up a comparison grid in no time 📊✨

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