LICI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | LICI | Market Cap | 5,28,569 Cr. | Current Price | 837 ₹ | High / Low | 980 ₹ |
| Stock P/E | 10.3 | Book Value | 223 ₹ | Dividend Yield | 1.43 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 844 ₹ | DMA 200 | 873 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.02 % | PAT Qtr | 10,053 Cr. | PAT Prev Qtr | 10,987 Cr. |
| RSI | 53.8 | MACD | -9.48 | Volume | 24,31,330 | Avg Vol 1Wk | 10,77,701 |
| Low price | 715 ₹ | High price | 980 ₹ | PEG Ratio | 0.08 | Debt to equity | 0.00 |
| 52w Index | 46.1 % | Qtr Profit Var | 31.9 % | EPS | 80.8 ₹ | Industry PE | 81.6 |
📊 LIC (LICI) shows strong fundamentals and moderate technical signals for swing trading. The stock trades at ₹837, slightly below its 50 DMA (₹844) and 200 DMA (₹873), indicating short-term weakness but long-term support. RSI at 53.8 suggests neutral momentum, while MACD at -9.48 signals mild bearishness. Valuation is attractive with a P/E of 10.3 compared to industry average of 81.6, supported by high ROE (46%) and ROCE (53.4%). Dividend yield of 1.43% adds investor appeal. Despite sequential PAT decline, overall profitability remains strong.
✅ Optimal Entry Price: Around ₹820–835 (near support zone, slightly below current price).
🚪 Exit Strategy (if already holding): Consider exit near ₹950–970 (resistance zone close to 52-week high). If price falls below ₹815, apply stop-loss to protect capital.
Positive
- 📈 Attractive valuation (P/E 10.3 vs industry 81.6).
- 💹 Strong ROE (46%) and ROCE (53.4%).
- 💰 Dividend yield of 1.43% adds stability.
- 📊 PEG ratio (0.08) indicates strong earnings growth potential.
- 📈 EPS of ₹80.8 supports long-term valuation strength.
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA.
- 📉 MACD (-9.48) indicates bearish momentum.
- 📉 Sequential PAT decline (10,053 Cr. vs 10,987 Cr.).
- 📉 DII holdings decreased (-0.02%).
Company Negative News
- 📉 Sequential decline in quarterly PAT.
- ⚠️ Mild bearish technical indicators (MACD negative).
Company Positive News
- 📈 Strong YoY profit variation (+31.9%).
- 🏦 FII holdings increased (+0.07%).
- 💰 Dividend payout adds investor confidence.
Industry
- 🏦 Insurance sector average PE is 81.6, LIC trades at a deep discount.
- 📊 Sector stability supports long-term compounding potential.
Conclusion
⚖️ LIC is a strong candidate for swing trading with attractive valuation, robust fundamentals, and institutional support. Entry near ₹820–835 offers favorable risk-reward, while exits should be targeted near ₹950–970. Despite short-term technical weakness, strong ROE, ROCE, and discounted valuation make LIC appealing for disciplined swing traders. Apply strict stop-loss below ₹815 to safeguard capital.