Update shared on 13 May 2026
Fair value Decreased 0.29%The latest analyst update trims Life Insurance Corporation of India’s implied fair value slightly from about ₹1,048.58 to ₹1,045.54, as analysts adjust their assumptions for discount rate, revenue growth, profit margin and future P/E in a relatively minor fine-tuning rather than a major reset.
What's in the News
- Board meeting scheduled for April 13, 2026 at 16:00 Indian Standard Time to consider issuing bonus equity shares in a 1:1 ratio, with 1 fully paid equity share of ₹10 proposed for every existing fully paid equity share of ₹10 held on the record date, by capitalizing up to ₹63,249,977,010 from reserves and surplus as of December 31, 2025 (company filing).
- The proposed bonus issue remains subject to approval from shareholders, which adds an extra step before any change to the share capital structure can take effect (company filing).
- Special or Extraordinary Shareholders Meeting planned via postal ballot in India on May 17, 2026, providing a forum for shareholders to vote on key resolutions that may include the proposed bonus issue (company filing).
Valuation Changes
- Fair Value was trimmed slightly from ₹1,048.58 to ₹1,045.54, reflecting a very small adjustment in the model output.
- The Discount Rate was adjusted marginally higher from 12.484% to 12.514%, indicating a slightly higher required return in the updated assumptions.
- Revenue Growth was kept effectively unchanged at about 9.33%, with only a very small numerical refinement in the updated estimate.
- Net Profit Margin was held effectively steady at about 4.87%, with only a minimal rounding difference in the revised figure.
- The Future P/E was nudged down slightly from 22.26x to 22.22x, signaling a very modest change in the assumed earnings multiple.
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