LICI - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | LICI | Market Cap | 5,07,138 Cr. | Current Price | 802 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.57 | 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 | 48.5 | MACD | 3.54 | Volume | 10,94,171 | Avg Vol 1Wk | 12,97,888 |
| Low price | 722 ₹ | High price | 980 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.00 |
| 52w Index | 31.1 % | Qtr Profit Var | 17.2 % | EPS | 83.8 ₹ | Industry PE | 70.1 |
Analysis: LIC (LICI) is trading at 802 ₹, slightly below its 50 DMA (811 ₹) and 200 DMA (848 ₹), suggesting near-term consolidation. RSI at 48.5 and MACD at 3.54 indicate neutral-to-positive momentum. The valuation is attractive with a P/E of 9.57 compared to the industry average of 70.1, supported by strong ROCE (53.4%) and ROE (46%). Quarterly PAT growth (12,958 Cr vs 10,053 Cr) and EPS of 83.8 ₹ highlight robust fundamentals. The PEG ratio of 0.07 suggests excellent growth potential relative to valuation. However, volumes are slightly below average, and the stock is trading far below its 52-week high (980 ₹), showing limited momentum in the short term.
Optimal Entry Price: Around 790–805 ₹, close to current levels and near DMA support.
Exit Strategy: If already holding, consider exiting near 850–880 ₹ (DMA 200 resistance zone) or on RSI approaching 65–70. A stop-loss can be placed around 770 ₹ to manage downside risk.
✅ Positive
- Strong quarterly PAT growth (17.2% variation).
- EPS at 83.8 ₹, reflecting strong earnings power.
- Attractive valuation with P/E of 9.57 vs industry average of 70.1.
- High ROCE (53.4%) and ROE (46%).
- PEG ratio at 0.07, indicating undervaluation relative to growth.
⚠️ Limitation
- Stock trading far below 52-week high (980 ₹).
- Volumes slightly below weekly average, limiting momentum.
- Near-term resistance at DMA 200 (848 ₹).
📉 Company Negative News
- DII holdings decreased (-0.06%).
- Stock underperforming relative to 52-week range (31.1%).
📈 Company Positive News
- Quarterly PAT surged to 12,958 Cr from 10,053 Cr.
- FII holdings increased slightly (+0.11%).
- Dividend yield at 1.50%, providing income stability.
🏭 Industry
- Industry P/E at 70.1, much higher than LIC’s 9.57, highlighting undervaluation.
- Insurance sector remains resilient with steady demand and long-term growth prospects.
🔎 Conclusion
LIC is a fundamentally strong and undervalued stock, making it a good candidate for swing trading. Entry near 790–805 ₹ is optimal, with exit around 850–880 ₹. Strong earnings, high return ratios, and attractive valuation support upside, though momentum remains moderate. Risk management is advised due to resistance near DMA 200 and subdued trading volumes.