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LICI

Life Insurance Corporation of India NSEI:LICI Stock Report

Last Price

₹676.65

Market Cap

₹4.3t

7D

2.3%

1Y

n/a

Updated

03 Jul, 2022

Data

Company Financials +
LICI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health2/6
Dividends1/6

LICI Stock Overview

Life Insurance Corporation of India provides life insurance products in India, Fiji, Mauritius, and the United Kingdom.

Life Insurance Corporation of India Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Life Insurance Corporation of India
Historical stock prices
Current Share Price₹676.65
52 Week High₹918.95
52 Week Low₹650.00
Beta0
1 Month Change-15.45%
3 Month Changen/a
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-22.69%

Recent News & Updates

Shareholder Returns

LICIIN InsuranceIN Market
7D2.3%1.1%0.6%
1Yn/a-18.0%-0.3%

Return vs Industry: Insufficient data to determine how LICI performed against the Indian Insurance industry.

Return vs Market: Insufficient data to determine how LICI performed against the Indian Market.

Price Volatility

Is LICI's price volatile compared to industry and market?
LICI volatility
LICI Average Weekly Movement4.2%
Insurance Industry Average Movement4.3%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.4%

Stable Share Price: LICI is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: Insufficient data to determine LICI's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1956108,987Raj Kumarhttps://www.licindia.in

Life Insurance Corporation of India provides life insurance products in India, Fiji, Mauritius, and the United Kingdom. It provides individual products, including participating insurance products; and non-participating products comprising savings insurance, term insurance, health insurance, annuity and pension, and unit-linked insurance products; special products for women and children, micro insurance products; and riders, an add-on covers to the base policy to facilitate additional benefits linked to the accident, critical illness, and death and premium waiver benefit. The company also offers group products, such as group term insurance, group savings insurance, group savings pension, and group annuity products.

Life Insurance Corporation of India Fundamentals Summary

How do Life Insurance Corporation of India's earnings and revenue compare to its market cap?
LICI fundamental statistics
Market Cap₹4.28t
Earnings (TTM)₹101.58b
Revenue (TTM)₹7.33t

42.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LICI income statement (TTM)
Revenue₹7.33t
Cost of Revenue₹6.81t
Gross Profit₹518.15b
Other Expenses₹416.56b
Earnings₹101.58b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)16.06
Gross Margin7.07%
Net Profit Margin1.39%
Debt/Equity Ratio0.01%

How did LICI perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LICI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LICI?

Other financial metrics that can be useful for relative valuation.

LICI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA26.9x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does LICI's PE Ratio compare to its peers?

LICI PE Ratio vs Peers
The above table shows the PE ratio for LICI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average91.8x
540777 HDFC Life Insurance
90.1x17.6%₹1.2t
540719 SBI Life Insurance
73.1xn/a₹1.1t
540133 ICICI Prudential Life Insurance
94.6x29.1%₹718.5b
MFSL Max Financial Services
109.4x30.7%₹277.2b
LICI Life Insurance Corporation of India
42.1x27.6%₹4.3t

Price-To-Earnings vs Peers: LICI is good value based on its Price-To-Earnings Ratio (42.1x) compared to the peer average (91.8x).


Price to Earnings Ratio vs Industry

How does LICI's PE Ratio compare vs other companies in the Asian Insurance Industry?

Price-To-Earnings vs Industry: LICI is good value based on its Price-To-Earnings Ratio (42.1x) compared to the Indian Insurance industry average (69.9x)


Price to Earnings Ratio vs Fair Ratio

What is LICI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LICI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LICI's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LICI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LICI (₹676.65) is trading above our estimate of fair value (₹232.97)

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


Price to Earnings Growth Ratio

PEG Ratio: LICI is poor value based on its PEG Ratio (1.5x)


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Future Growth

How is Life Insurance Corporation of India forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LICI's forecast earnings growth (27.6% per year) is above the savings rate (6.8%).

Earnings vs Market: LICI's earnings (27.6% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: LICI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LICI's revenue (5.4% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: LICI's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LICI's Return on Equity is forecast to be very high in 3 years time (56%).


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Past Performance

How has Life Insurance Corporation of India 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


121.3%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: LICI has high quality earnings.

Growing Profit Margin: LICI's current net profit margins (1.4%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if LICI's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare LICI's past year earnings growth to its 5-year average.

Earnings vs Industry: LICI earnings growth over the past year (121.3%) exceeded the Insurance industry -8.1%.


Return on Equity

High ROE: LICI's Return on Equity (88.7%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Life Insurance Corporation of India's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LICI's short term assets (₹1,988.4B) exceed its short term liabilities (₹715.2B).

Long Term Liabilities: LICI's short term assets (₹1,988.4B) do not cover its long term liabilities (₹41,710.8B).


Debt to Equity History and Analysis

Debt Level: LICI has more cash than its total debt.

Reducing Debt: Insufficient data to determine if LICI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LICI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LICI's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


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Dividend

What is Life Insurance Corporation of India current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LICI's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: LICI's dividend (0.22%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether LICI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if LICI's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.3%), LICI's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: LICI is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure


CEO

Raj Kumar (60 yo)

2.67yrs

Tenure

Mr. Raj Kumar is Nominee Director of IDBI Bank Limited from May 19, 2022. He serves as Non-Executive Director of Grasim Industries Limited since February 2022 and served as its Additional Non-Executive Dir...


Leadership Team

Experienced Management: LICI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: LICI's board of directors are not considered experienced ( 0.8 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.


Ownership Breakdown

Dilution of Shares: LICI only recently listed within the past 12 months.


Top Shareholders

Company Information

Life Insurance Corporation of India's employee growth, exchange listings and data sources


Key Information

  • Name: Life Insurance Corporation of India
  • Ticker: LICI
  • Exchange: NSEI
  • Founded: 1956
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: ₹4.280t
  • Shares outstanding: 6.32b
  • Website: https://www.licindia.in

Number of Employees


Location

  • Life Insurance Corporation of India
  • Yogakshema Building
  • Jeevan Bima Marg
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.