SBILIFE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.3

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📊 Fundamental Analysis Report

• Stock Code: SBILIFE
• Market Cap: ₹1,95,977 Cr
• Current Price: ₹1,955
• 52W High/Low: ₹1,978 / ₹1,373
• EPS: ₹24.5
• Stock P/E: 79.8 vs Industry P/E: 82.7 ✅
• PEG Ratio: 4.69 ❗ (Overvalued vs Growth)
• Book Value: ₹182 | P/B Ratio: ~10.74 ❗
• ROE: 15.1% | ROCE: 16.9% 🔶
• Debt to Equity: 0.00 🟢 (Debt-Free)
• Dividend Yield: 0.14% 🚫
• Quarterly PAT: ₹495 Cr (↓16.7%)
• RSI: 76.8 | MACD: 33.2 📈

✅ Positive

• Strong ROE and ROCE reflect efficient capital deployment and profitability.
• Debt-free balance sheet enhances financial resilience and operational flexibility.
• Price trading above DMA 50 and 200 confirms bullish technical momentum.
• DII holding increased by 0.46%, indicating domestic institutional confidence.
• Stock has delivered 96.2% return over the past year, showing strong investor sentiment.

⚠️ Limitation

• High PEG and P/B ratios suggest valuation is stretched relative to growth and assets.
• Dividend yield is minimal, offering limited passive income.
• RSI above 70 indicates overbought zone, caution for short-term entry.
• FII holding declined by 0.49%, reflecting cautious foreign sentiment.

📉 Company Negative News

• Sequential PAT declined from ₹594 Cr to ₹495 Cr.
• Stock may face short-term correction due to overbought RSI levels.

📈 Company Positive News

• Strong long-term performance and consistent profitability support investor confidence.
• MACD remains positive, indicating underlying bullish momentum.

🏦 Industry

• SBILIFE operates in the life insurance and financial services sector.
• Industry P/E of 82.7 is slightly higher, suggesting SBILIFE trades near sector average.
• Sector benefits from rising insurance penetration, financial literacy, and regulatory support.

🧭 Conclusion

• Entry Zone: ₹1,880–₹1,920 (wait for RSI to cool down)
• Long-Term View: Strong fundamentals and sector growth support long-term holding. Accumulate on dips while monitoring valuation and technical indicators.