Analysts have trimmed their fair value estimate for Life Insurance Corporation of India from about ₹1,080.39 to roughly ₹1,048.58, reflecting updated views on the stock’s appropriate P/E multiple while keeping key fundamental assumptions broadly unchanged.
What's in the News
- A board meeting is scheduled for February 5, 2026 to consider and approve unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025 (company filing).
- A board meeting is set for April 13, 2026 at 16:00 IST to consider issuing bonus equity shares in a 1:1 ratio by capitalizing up to ₹63,249,977,010 from reserves and surplus as of December 31, 2025, subject to shareholder approval (company filing).
- A special or extraordinary shareholders meeting is planned via postal ballot in India on May 17, 2026, linked to approvals required from members of the corporation (company filing).
- The government is considering a further reduction of its 96.5% stake in LIC through a public offering in the next financial year to move toward the mandated 10% public shareholding by May 2027, with the quantum, price, and timing of any stake sale to be decided later (government statement reported February 2, 2026).
Valuation Changes
- Fair Value: Revised from about ₹1,080.39 to roughly ₹1,048.58, indicating a modest reduction in the estimated intrinsic value per share.
- Discount Rate: Held steady at 12.484%, so the required return used in the valuation has not changed.
- Revenue Growth: Kept effectively unchanged at around 9.33%, so projected top line growth assumptions remain consistent.
- Net Profit Margin: Maintained at about 4.87%, reflecting no material adjustment to profitability assumptions.
- Future P/E: Trimmed from about 22.94x to roughly 22.26x, indicating a slightly lower valuation multiple applied to expected earnings.
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