LICI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | LICI | Market Cap | 4,84,526 Cr. | Current Price | 766 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.14 | Book Value | 223 ₹ | Dividend Yield | 1.57 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 834 ₹ | DMA 200 | 864 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.02 % | PAT Qtr | 12,958 Cr. | PAT Prev Qtr | 10,053 Cr. |
| RSI | 31.1 | MACD | -21.5 | Volume | 10,89,417 | Avg Vol 1Wk | 11,25,119 |
| Low price | 743 ₹ | High price | 980 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.00 |
| 52w Index | 9.86 % | Qtr Profit Var | 17.2 % | EPS | 83.8 ₹ | Industry PE | 74.7 |
📊 LIC (LICI) shows strong fundamentals but weak technicals for swing trading. The RSI at 31.1 indicates oversold conditions, suggesting a potential rebound. The MACD (-21.5) reflects bearish momentum, and the stock is trading below both 50 DMA (834 ₹) and 200 DMA (864 ₹), showing short-term weakness. However, the low P/E of 9.14 compared to the industry average of 74.7, strong ROCE (53.4%), and ROE (46%) highlight robust fundamentals. Overall, this is a good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 745–760 ₹ (near recent support and oversold zone).
📈 Exit Strategy (if already holding): Consider exiting near 830–850 ₹ (DMA resistance zone) unless momentum strengthens further.
✅ Positive
- Strong quarterly PAT growth (12,958 Cr. vs 10,053 Cr.).
- EPS of 83.8 ₹ reflects strong earnings power.
- ROCE (53.4%) and ROE (46%) are excellent, showing efficient capital use.
- Dividend yield of 1.57% adds investor appeal.
- PEG ratio of 0.07 indicates undervaluation relative to growth.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA.
- Bearish technical indicators (MACD negative, RSI oversold).
- Volume slightly below weekly average, showing weaker participation.
📉 Company Negative News
- Minor decline in DII holdings (-0.02%), showing reduced domestic confidence.
- Stock has fallen significantly from 52-week high (980 ₹ to 766 ₹).
📈 Company Positive News
- Sequential PAT growth (29% increase from previous quarter).
- FII holdings increased slightly (+0.07%).
- Strong fundamentals compared to industry peers.
🏭 Industry
- Industry PE is 74.7, much higher than LIC’s 9.14, suggesting LIC is undervalued.
- Insurance sector remains defensive with long-term growth potential.
🔎 Conclusion
LIC is a fundamentally strong swing trade candidate with undervaluation compared to peers. Entry near 745–760 ₹ offers a favorable risk-reward setup. If already holding, exit near 830–850 ₹ unless momentum improves. While technicals remain weak, strong earnings and efficiency make this a promising short-term rebound opportunity.