Life Insurance Corp

₹974.5 4.3 | 0.4%

WEBSITE BSE:543526 NSE : LICI 18 May, 12:50

Market Cap ₹616339 Cr.

Stock P/E 15.3

P/B 8.8

Current Price ₹974.5

Book Value ₹ 110.9

Face Value 10

52W High ₹1175

Dividend Yield 0.31%

52W Low ₹ 562.2

Edit Ratio

Life Insurance Corp Research see more...

Equity Research Report - Life Insurance Corporation of India Limited

LICI: FY22 fair valuation around 520 but may scale 1075 by FY: 23-24

Overview Inc. Year: 1956Industry: Insurance

Life Insurance Corporation of India offers life insurance products in India, Fiji, Mauritius, and the UK. It provides individual projects, which includes collaborating coverage products; and non-participating products comprising savings coverage, term coverage, health insurance, annuity and pension, and unit-linked insurance merchandise; special merchandise for women and children, micro coverage merchandise; and riders, an add-on covers to the base policy to facilitate additional advantages linked to the accident, vital infection, and demise and premium waiver advantage. The organization additionally provides group products, including group term coverage, group savings coverage, group savings pension, and group annuity products. Life Insurance Corporation of India was established in 1956 and is primarily based in Mumbai, India.

Life Insurance Corp Share Price

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Peer Comparison

Life Insurance Corp Quarterly Results

#(Fig in Cr.)	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Net Sales	104914	98052	144159	98805	132632	112297	132223	98755	107877	117432
Other Income	82354	77025	71442	70985	90506	85688	69411	91525	95444	96828
Total Income	187268	175077	215600	169791	223138	197985	201634	190280	203321	214260
Total Expenditure	183939	172277	215193	168369	202373	195046	189481	180168	195646	204745
Operating Profit	3328	2800	408	1421	20765	2939	12154	10113	7675	9515
Interest	0	0	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	0	0	0	0	0	0
Exceptional Income / Expenses	0	0	0	0	0	0	0	0	0	0
Profit Before Tax	3328	2800	408	1421	20765	2939	12154	10113	7675	9515
Provision for Tax	3217	3218	-31	1481	5452	-2458	991	1461	97	1424
Profit After Tax	111	-417	438	-60	15313	5397	11163	8651	7577	8092
Adjustments	1368	629	1971	662	542	952	2028	984	453	1377
Profit After Adjustments	1480	211	2409	603	15854	6349	13191	9635	8030	9469
Adjusted Earnings Per Share	2.3	0.3	3.8	1	25.1	10	20.9	15.2	12.7	15

Life Insurance Corp Profit & Loss

#(Fig in Cr.)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Net Sales	339972	382476	405398	429501	475957	456287
Other Income	230838	263130	298281	294925	315157	353208
Total Income	570810	645605	703679	724425	791114	809495
Total Expenditure	567669	644929	689936	706540	744236	770040
Operating Profit	3141	677	13743	17885	46878	39457
Interest	41	58	114	87	77	0
Depreciation	429	779	417	436	466	0
Exceptional Income / Expenses	0	0	0	0	0	0
Profit Before Tax	2642	2719	2983	4165	36081	39457
Provision for Tax	15	8	9	40	84	3973
Profit After Tax	2627	2710	2974	4125	35997	35483
Adjustments	0	0	0	0	0	4842
Profit After Adjustments	2627	2710	2974	4125	35997	40325
Adjusted Earnings Per Share	4.2	4.3	4.7	6.5	56.9	63.8

Growth Rates

#	1 Year	3 Year	5 Year	10 Year
Sales CAGR	11%	8%	0%	0%
Operating Profit CAGR	162%	311%	0%	0%
PAT CAGR	773%	137%	0%	0%

#	1 Year	3 Year	5 Year	10 Year
Share Price CAGR	72%	NA%	NA%	NA%
ROE Average	124%	81%	154%	154%
ROCE Average	125%	58%	35%	35%

Life Insurance Corp Balance Sheet

#(Fig in Cr.)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Shareholder's Funds	986	1088	6905	11365	46545
Minority's Interest	0	0	0	0	0
Borrowings	269401	253414	4	1	0
Other Non-Current Liabilities	3116583	3180303	3754444	4186117	4487268
Total Current Liabilities	40282	65032	68171	56574	44678
Total Liabilities	3427252	3499837	3829524	4254058	4578491
Fixed Assets	13857	13838	3326	3372	3505
Other Non-Current Assets	3162214	3228647	3640754	4051842	4377313
Total Current Assets	251181	257352	185444	198844	197673
Total Assets	3427252	3499837	3829524	4254058	4578491

Life Insurance Corp Cash Flow

#(Fig in Cr.)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Opening Cash & Cash Equivalents	58695	67906	63194	36118	44866
Cash Flow from Operating Activities	13274	54367	80602	-3783	54519
Cash Flow from Investing Activities	8765	-41809	148792	12099	-54472
Cash Flow from Financing Activities	-13700	-18664	-256125	0	-949
Net Cash Inflow / Outflow	8339	-6106	-26731	8316	-902
Closing Cash & Cash Equivalent	67906	63194	36118	44866	45588

Life Insurance Corp Ratios

#	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Earnings Per Share (Rs)	4.15	4.29	4.7	6.52	56.91
CEPS(Rs)	4.15	4.29	4.7	6.52	56.91
DPS(Rs)	4.2	4.3	0	1.5	3
Book NAV/Share(Rs)	1.56	1.72	10.91	17.96	73.59
Core EBITDA Margin(%)	-66.98	-68.62	-70.19	-64.5	-56.37
EBIT Margin(%)	0.78	0.71	0.74	0.97	7.58
Pre Tax Margin(%)	0.78	0.71	0.74	0.97	7.58
PAT Margin (%)	0.77	0.71	0.73	0.96	7.56
Cash Profit Margin (%)	0.77	0.71	0.73	0.96	7.56
ROA(%)	0.08	0.08	0.08	0.1	0.83
ROE(%)	266.49	261.64	74.46	45.16	124.33
ROCE(%)	0.98	1.04	2.28	45.59	124.62
Receivable days	0	0	0	0	0
Inventory Days	0	0	0	0	0
Payable days	0	0	0	0	0
PER(x)	0	0	0	0	9.39
Price/Book(x)	0	0	0	0	7.27
Dividend Yield(%)	0	0	0	0	0.56
EV/Net Sales(x)	-0.2	-0.16	-0.09	-0.09	0.61
EV/Core EBITDA(x)	-21.59	-93.19	-2.62	-2.15	6.24
Net Sales Growth(%)	0	12.5	5.99	5.95	10.82
EBIT Growth(%)	0	2.88	9.72	39.62	766.38
PAT Growth(%)	0	3.16	9.73	38.69	772.71
EPS Growth(%)	0	3.16	9.73	38.69	772.71
Debt/Equity(x)	0	0	0	0	0
Current Ratio(x)	4.12	3	2.23	2.78	3.32
Quick Ratio(x)	4.12	3	2.23	2.78	3.32
Interest Cover(x)	0	0	0	0	0
Total Debt/Mcap(x)	0	0	0	0	0

Life Insurance Corp Shareholding Pattern

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	96.5	96.5	96.5	96.5	96.5	96.5	96.5	96.5
FII	0.12	0.18	0.17	0.08	0.08	0.1	0.06	0.15
DII	1.06	0.91	0.92	0.89	0.83	0.84	1	0.86
Public	2.32	2.42	2.42	2.53	2.59	2.56	2.44	2.49
Others	0	0	0	0	0	0	0	0
Total	100	100	100	100	100	100	100	100

#	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoter	610.36	610.36	610.36	610.36	610.36	610.36	610.36	610.36
FII	0.78	1.12	1.05	0.51	0.52	0.62	0.4	0.92
DII	6.69	5.73	5.8	5.66	5.26	5.34	6.31	5.46
Public	14.67	15.29	15.29	15.97	16.36	16.19	15.42	15.76
Others	0	0	0	0	0	0	0	0
Total	632.5	632.5	632.5	632.5	632.5	632.5	632.5	632.5

Pros

Company has a good return on equity (ROE) track record: 3 Years ROE 81%
Company has reduced debt.
Company is almost debt free.

Cons

Stock is trading at 8.8 times its book value.
Earnings include an other income of Rs. 315157 Cr.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.