⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SBILIFE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SBILIFE | Market Cap | 1,98,023 Cr. | Current Price | 1,974 ₹ | High / Low | 2,116 ₹ |
| Stock P/E | 79.9 | Book Value | 190 ₹ | Dividend Yield | 0.14 % | ROCE | 16.9 % |
| ROE | 15.1 % | Face Value | 10.0 ₹ | DMA 50 | 2,017 ₹ | DMA 200 | 1,873 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 577 Cr. | PAT Prev Qtr | 495 Cr. |
| RSI | 38.2 | MACD | -8.31 | Volume | 9,17,940 | Avg Vol 1Wk | 19,26,588 |
| Low price | 1,380 ₹ | High price | 2,116 ₹ | PEG Ratio | 4.69 | Debt to equity | 0.00 |
| 52w Index | 80.8 % | Qtr Profit Var | 4.71 % | EPS | 24.7 ₹ | Industry PE | 80.8 |
📊 Core Financials
- Quarterly PAT growth: 577 Cr vs 495 Cr (+16.5%), showing steady earnings momentum.
- ROE at 15.1% and ROCE at 16.9% reflect efficient capital utilization.
- Debt-to-equity ratio: 0.00, indicating a debt-free balance sheet.
- Cash flows supported by strong insurance premium collections and investment income.
💹 Valuation Indicators
- P/E ratio: 79.9, aligned with industry average (80.8), but still very high.
- P/B ratio: ~10.4 (1,974 ₹ / 190 ₹ book value), showing premium valuation.
- PEG ratio: 4.69, suggesting expensive growth-adjusted valuation.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates as a leading life insurance provider under SBI brand, leveraging strong distribution network.
- Competitive advantage lies in brand trust, bancassurance partnerships, and diversified product portfolio.
- Strong growth potential in India’s underpenetrated life insurance sector.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 1,850–1,900 ₹ range (near 200 DMA support at 1,873 ₹).
- Long-term holding recommended due to debt-free status and strong industry outlook.
- Investors should accumulate gradually, given high valuations and moderate profit growth.
Positive
- Debt-free balance sheet.
- Strong brand backing from SBI.
- Consistent profit growth and efficient capital utilization.
Limitation
- High P/E and P/B ratios, indicating expensive valuation.
- Low dividend yield (0.14%).
- Quarterly profit growth modest at 4.71% compared to valuation multiples.
Company Negative News
- Stock trading below 50 DMA (2,017 ₹), showing short-term weakness.
- Technical indicators weak (RSI at 38.2, MACD negative).
Company Positive News
- Quarterly PAT growth demonstrates resilience.
- FII and DII holdings increased slightly, showing institutional confidence.
Industry
- Industry PE at 80.8, reflecting high valuations across life insurance sector.
- Life insurance penetration in India remains low, offering long-term growth opportunities.
Conclusion
- SBILIFE is fundamentally strong with debt-free operations and steady profitability.
- Valuations remain stretched, making accumulation near 1,850–1,900 ₹ more attractive.
- Best suited for long-term investors seeking exposure to India’s growing insurance sector.
Would you like me to also compare SBILIFE with its peers like HDFC Life and ICICI Prudential to highlight relative strengths and weaknesses?