SBI Life Insurance (BSE:540719) - Share price, News & Analysis

540719 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	2/6

540719 Stock Overview

SBI Life Insurance Company Limited operates as a private life insurance company in India.

Rewards

Earnings grew by 3.4% over the past year

Risk Analysis

No risks detected for 540719 from our risk checks.

SBI Life Insurance Competitors

Life Insurance Corporation of India

NSEI:LICI

₹5.5t

HDFC Life Insurance

BSE:540777

₹1.2t

ICICI Prudential Life Insurance

BSE:540133

₹719.7b

Price History & Performance

Summary of all time highs, changes and price drops for SBI Life Insurance
Historical stock prices
Current Share Price	₹1,070.75
52 Week High	₹1,293.00
52 Week Low	₹956.85
Beta	0.59
1 Month Change	-6.70%
3 Month Change	-4.56%
1 Year Change	10.56%
3 Year Change	62.69%
5 Year Change	n/a
Change since IPO	51.24%

Shareholder Returns

	540719	IN Insurance	IN Market
7D	-1.0%	1.0%	0.7%
1Y	10.6%	-11.7%	10.6%

Return vs Industry: 540719 exceeded the Indian Insurance industry which returned -12.5% over the past year.

Return vs Market: 540719 exceeded the Indian Market which returned 9% over the past year.

Price Volatility

Is 540719's price volatile compared to industry and market?
540719 volatility
540719 Average Weekly Movement	4.7%
Insurance Industry Average Movement	5.1%
Market Average Movement	7.2%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.8%

Stable Share Price: 540719 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 540719's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	18,515	Mahesh Sharma	https://www.sbilife.co.in

SBI Life Insurance Company Limited operates as a private life insurance company in India. Its life insurance business comprises of individual life and group business, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group immediate annuity, unit-linked and variable insurance products, health, and micro insurance. The company also provides accident and disability benefit, level term, and critical illness insurance products.

SBI Life Insurance Fundamentals Summary

How do SBI Life Insurance's earnings and revenue compare to its market cap?
540719 fundamental statistics
Market Cap	₹1.07t
Earnings (TTM)	₹15.06b
Revenue (TTM)	₹829.57b

71.1x

P/E Ratio

1.3x

P/S Ratio

Is 540719 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
540719 income statement (TTM)
Revenue	₹829.57b
Cost of Revenue	₹773.37b
Gross Profit	₹56.20b
Other Expenses	₹41.14b
Earnings	₹15.06b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	15.05
Gross Margin	6.77%
Net Profit Margin	1.82%
Debt/Equity Ratio	0.0%

How did 540719 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is SBI Life Insurance undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

71.13x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 540719 (₹1070.75) is trading above our estimate of fair value (₹138.37)

Significantly Below Fair Value: 540719 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 540719 is poor value based on its PE Ratio (71.1x) compared to the Indian Insurance industry average (69.5x).

PE vs Market: 540719 is poor value based on its PE Ratio (71.1x) compared to the Indian market (20.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540719's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 540719 is overvalued based on its PB Ratio (9.2x) compared to the IN Insurance industry average (6.7x).

Future Growth

How is SBI Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

31.4%

Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SBI Life Insurance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has SBI Life Insurance performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540719 has high quality earnings.

Growing Profit Margin: 540719's current net profit margins (1.8%) are higher than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: 540719's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: 540719's earnings growth over the past year (3.4%) is below its 5-year average (5.4% per year).

Earnings vs Industry: 540719 earnings growth over the past year (3.4%) exceeded the Insurance industry -13.7%.

Return on Equity

High ROE: 540719's Return on Equity (13%) is considered low.

Financial Health

How is SBI Life Insurance's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 540719's short term assets (₹76.2B) exceed its short term liabilities (₹51.3B).

Long Term Liabilities: 540719's short term assets (₹76.2B) do not cover its long term liabilities (₹2,565.8B).

Debt to Equity History and Analysis

Debt Level: 540719 is debt free.

Reducing Debt: 540719 has not had any debt for past 5 years.

Debt Coverage: 540719 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 540719 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is SBI Life Insurance current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 540719's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.37%).

High Dividend: 540719's dividend (0.19%) is low compared to the top 25% of dividend payers in the Indian market (1.61%).

Stability and Growth of Payments

Stable Dividend: 540719 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540719 has only been paying a dividend for 4 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.3%), 540719's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (0.9%), 540719's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Insurance industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Mahesh Sharma (56 yo)

2yrs

Tenure

₹4,309,000

Compensation

Mr. Mahesh Kumar Sharma serves as Managing Director, Chief Executive Officer and Director at SBI Life Insurance Company Ltd. since May 9, 2020 and served as its Deputy Chief Executive Officer since April 8...

CEO Compensation Analysis

Compensation vs Market: Mahesh's total compensation ($USD55.35K) is below average for companies of similar size in the Indian market ($USD1.21M).

Compensation vs Earnings: Insufficient data to compare Mahesh's compensation with company performance.

Leadership Team

Experienced Management: 540719's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: 540719's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31