SBILIFE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SBILIFE | Market Cap | 1,82,449 Cr. | Current Price | 1,819 ₹ | High / Low | 2,133 ₹ |
| Stock P/E | 73.9 | Book Value | 190 ₹ | Dividend Yield | 0.15 % | ROCE | 15.0 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,910 ₹ | DMA 200 | 1,898 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.41 % | PAT Qtr | 805 Cr. | PAT Prev Qtr | 577 Cr. |
| RSI | 41.5 | MACD | -27.1 | Volume | 11,21,750 | Avg Vol 1Wk | 16,47,437 |
| Low price | 1,663 ₹ | High price | 2,133 ₹ | PEG Ratio | 5.77 | Debt to equity | 0.00 |
| 52w Index | 33.2 % | Qtr Profit Var | -1.09 % | EPS | 24.6 ₹ | Industry PE | 70.0 |
📊 SBILIFE exhibits strong fundamentals with healthy ROCE (15.0%) and stable ROE (13.7%). The company is debt-free, which enhances long-term sustainability. However, valuations remain stretched with a high P/E (73.9 vs industry 70.0) and PEG ratio (5.77), suggesting growth is not keeping pace with valuation. Current price ₹1,819 is slightly above the ideal entry zone of ₹1,660–₹1,720, making dips more attractive for accumulation.
💡 Long-term investors can hold with a 3–5 year horizon, focusing on ROE stability and PAT growth. Exit strategy: partial profit booking near ₹2,050–2,100 resistance or if earnings growth continues to lag. Dividend yield (0.15%) is low, so capital appreciation is the main driver.
Positive
- 📈 Strong ROCE (15.0%) and ROE (13.7%).
- 💰 Debt-free balance sheet (Debt-to-equity: 0.00).
- 🔎 PAT growth (805 Cr. vs 577 Cr. previous quarter).
Limitation
- ⚠️ High valuation with P/E at 73.9 vs industry 70.0.
- 📊 PEG ratio (5.77) indicates expensive growth.
- 📉 Dividend yield is very low (0.15%).
Company Negative News
- 📉 Decline in FII holding (-0.37%).
- 📊 Quarterly profit variation slightly negative (-1.09%).
Company Positive News
- 📈 DII holding increased (+0.41%), showing domestic investor confidence.
- 📊 Strong PAT growth quarter-on-quarter.
Industry
- 🏦 Industry PE at 70.0, showing SBILIFE trades at a premium.
- 📈 Life insurance sector in India is expanding with rising financial awareness and penetration.
Conclusion
⚖️ SBILIFE is a moderately attractive long-term investment with strong fundamentals, debt-free status, and consistent profitability. However, high valuations and modest growth metrics limit upside potential. Best strategy: accumulate near ₹1,660–₹1,720, hold for 3–5 years, and consider exit near ₹2,050–₹2,100 unless earnings growth accelerates significantly.
This HTML report captures SBILIFE’s valuation, strengths, and risks with clear entry/exit guidance. Would you like me to extend this by overlaying peer benchmarking against HDFC Life and ICICI Prudential Life to highlight relative positioning in the insurance sector?