Life Insurance Corporation of India - Stock Valuation and Financial Performance

BSE: 543526 | NSE: LICI | Insurance | Large Cap

Life Insurance Corp Share Price

971.15 -5.75 -0.59%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Life Insurance Corp

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

ife Insurance Corporation of India stock performance -

mw4me loader
P/E Ratio (SA):
15.23
Market Cap:
6,14,252.1 Cr.
52-wk low:
542.8
52-wk high:
1,175

Is Life Insurance Corporation of India an attractive stock to invest in?

1. Is Life Insurance Corporation of India a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Life Insurance Corporation of India is a average quality company.

2. Is Life Insurance Corporation of India undervalued or overvalued?

The key valuation ratios of Life Insurance Corporation of India's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Life Insurance Corporation of India a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Life Insurance Corporation of India is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Life Insurance Corp:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Life Insurance Corporation of India has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 0%0%0%0%0%0%0%0%0%0%-
Value Creation
Index
NANANANANANANANANANA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 00000000000
Sales YoY Gr.-NANANANANANANANANA-
Adj EPS 2.62.943.53.94.34.34.66.457.663.8
YoY Gr.-9.9%38.2%-11.3%9.6%9.8%0.9%7%39.2%800.6%-
BVPS (₹) 0.80.90.91111.11016.472.4111.8
Adj Net
Profit
1,6571,8242,5182,2322,4462,6892,7132,9014,04336,39740,341
Cash Flow from Ops. 33,24754,19077,40570,55567,86519,76574,76955,723-3,13559,718-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANANANA
Adj EPS 41%71.6%137.6%800.6%
BVPS64.1%136%299.1%342%
Share Price - - - 76.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
0000000000-
Op. Profit
Mgn %
0000000000-
Net Profit
Mgn %
0000000000-
Debt to
Equity
0000000000-
Working Cap
Days
00000000000
Cash Conv.
Cycle
000000000047

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 69.20%

Net Profit is growing at healthy rate in last 3 years 137.61%

Sales growth has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -5.59%

Latest Financials - Life Insurance Corporation of India

Standalone Consolidated
TTM EPS (₹) 63.8 63.8
TTM Sales (₹ Cr.) 4,54,538 4,56,287
BVPS (₹.) 111.8 110.9
Reserves (₹ Cr.) 64,396 63,817
P/BV 8.69 8.76
PE 15.23 15.23
From the Market
52 Week Low / High (₹) 542.75 / 1175.00
All Time Low / High (₹) 530.20 / 1175.00
Market Cap (₹ Cr.) 6,14,252
Equity (₹ Cr.) 6,325
Face Value (₹) 10
Industry PE 21.9

Management X-Ray of Life Insurance Corp:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Life Insurance Corp

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income From Investments34333248384335232011,148
Other Income 0000000003
Expenses0100000010
Profit Before Tax1,6681,8342,5292,2482,4592,7032,7212,9074,06736,457
Tax 121111171315862459
Adjustments 0000000000
Net Profit 1,6571,8242,5182,2322,4462,6882,7132,9014,04336,397
Adjusted EPS (₹)2.622.883.983.533.874.254.294.596.3957.55
Dividend Payout Ratio (%)99%99%99%99%99%2%2%0%23%5%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Share Capital 1001001001001001001001006,3256,325
Reserve and Surplus4304514725025275556226,2254,04339,492
Fair Value A/C9121152424183641-148
Borrowings 0000000000
Policy Holders Fund 1,08,1911,58,6691,03,9721,94,9981,96,7342,16,778-4,3412,72,8714,00,2393,48,280
Funds For Appropriations100000031,8343,919
Total Liabilities 17,24,45819,92,07921,70,80825,29,14727,91,61530,55,61331,23,73237,28,90241,59,34544,91,132

Assets

Investment0000000000
Loans96,2751,01,0281,04,1641,02,2911,02,7501,04,3231,07,8231,07,7831,09,8761,15,562
Total Net block 2,7832,8692,9112,4032,5742,6432,7673,3053,3543,489
Total Assets 17,24,45819,92,07921,70,80825,29,14727,91,61530,55,61331,23,73237,28,90241,59,34544,91,132

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 33,24754,19077,40570,55567,86519,76574,76955,723-3,13559,718
PBT 0000000000
Adjustment 46,34461,60685,55592,77784,53242,83786,82772,2196,10156,034
Changes in Working Capital -2325-165-549-7765-1362-4918-721-4704760167
Tax Paid -7,832-7,251-6,750-13,527-15,306-18,154-11,337-11,792-9,9973,516
Cash Flow From Investing Activity -33,506-69,099-97,078-78,249-75,6101,895-85,763-54,18610,486-58,196
Capex 47-190-22333-304-375-456-789-457-544
Net Investments -1,43,618-2,19,816-2,44,138-2,38,137-2,49,017-1,84,144-2,92,166-2,76,617-2,37,790-3,21,647
Others 1,10,0661,50,9081,47,0821,59,5541,73,7121,86,4142,06,8592,23,2202,48,7332,63,994
Cash Flow From Financing Activity 0-1,634-1,803-2,497-2,370-2,252-2,60800-949
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 000000000-949
Dividend Paid 0-1,634-1,803-2,497-2,370-2,252-2,661000
Others 00000052000
Net Cash Flow -259-16,543-21,475-10,191-10,11519,408-13,6021,5377,350573
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)
ROCE (%)
Asset Turnover Ratio0.150.130.130.130.120.120.120.120.110.11
PAT to CFO Conversion(x)20.0629.7130.7431.6127.757.3527.5619.21-0.781.64
Working Capital Days
Receivable Days0000000000
Inventory Days0000000000
Payable Days0000000000

Life Insurance Corporation of India Stock News

Life Insurance Corporation of India FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Life Insurance Corp on 12-Apr-2024 16:59 is ₹971.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Life Insurance Corp stood at ₹6,14,252.1.
The latest P/E ratio of Life Insurance Corp as of 12-Apr-2024 16:59 is 15.23.
The latest P/B ratio of Life Insurance Corp as of 12-Apr-2024 16:59 is 8.69.
The 52-week high of Life Insurance Corp is ₹1,175 and the 52-week low is ₹542.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Life Insurance Corp is ₹4,54,538 ( Cr.) .

About Life Insurance Corporation of India

Life Insurance Corporation, popularly known as LIC is Indian state-owned insurance group and investment company. The corporation was formed by merging and nationalizing 245 private life insurance companies in India on September 1, 1956, with an initial capital of Rs 50 million. From the corporation’s incorporation until 2000, it was the only life insurer in India. The corporation was identified by IRDAI as a Domestic Systemically Important Insurer (D-SII) on the basis of size, market importance and domestic and global inter-connectedness in September 2020. The corporation’s brand, LIC, was recognised as the third strongest and 10th most valuable global insurance brand as per the “Insurance 100 2021 report” released by Brand Finance. The strength of a brand means the efficacy of a brand's performance on intangible measures relative to its competitors and is determined by looking at the brand's marketing investment, stakeholder equity and impact of those on business performance. The value of a brand is the present value of earnings specifically related to brand reputation.

Business area of the company

The corporation is been providing life insurance in India for many years and is the largest life insurer in India. It has a broad, diversified product portfolio covering various segments across individual products and group products. Its individual products comprise (i) participating insurance products and (ii) non-participating products, which include (a) savings insurance products; (b) term insurance products; (c) health insurance products; (d) annuity and pension products; and (e) unit linked insurance products. Its individual products include specially designed products for specific segments, such as special products for women and children and Micro Insurance products. In addition, it offer riders that provide additional benefits along with the base product to cover for additional risks, such as accidental disability, death, critical illness and premium waiver on the death of the proposer. The corporation’s individual product portfolio in India comprises many individual products and various individual riders. Its group products comprise (i) group term insurance products, (ii) group savings insurance products; (iii) group savings pension products; and (iv) group annuity products. The corporation’s group product portfolio in India comprises various group products.

The corporation’s omni-channel distribution platform for individual products currently comprises (i) individual agents, (ii) bancassurance partners, (iii) alternate channels (corporate agents, brokers and insurance marketing firms), (iv) digital sales (through a portal on Corporation’s website), (v) Micro Insurance agents and (vi) Point of Sales Persons-Life Insurance scheme. The corporation’s individual policies are primarily distributed by its individual agents.

Awards, accreditations and recognitions received by corporation

2019-2020:

  • Aqua Foundation’s Excellence Award under the category of Excellence in Resource Management.
  • BFSI Congress - Customer Centric Excellence Award.
  • Life Insurance Provider of the year at Outlook Money Awards.
  • Award for Marketing Excellence in BFSI sector at BTVI Awards.
  • Golden Peacock National Training Award (GPNTA) for the year 2019.

2020-21:

  • Certificate of Appreciation on reaching final rounds of evaluation of BML Munjal Awards 2020.
  • HR Award 2020 in Training Excellence at the 9th Annual Greentech HR Award 2020.
  • Golden Peacock Award for Excellence in Corporate Governance (GPAECG) for the year 2020.
  • Continuous Campaign (Metro only) Award by IPRCCA.
  • Jamnalal BajajUchit Vyavahar Puraskar for Fair Business Practices by Council for Fair Business Practices.
  • SKOCH Award - Excellence in BFSI (Platinum) for claim settlements.
  • Micro Insurance Leader Award at the Business Leader of the Year Awards.
  • Claim Service Leader Award at the Business Leader of the Year Award.
  • Most Admired Company of the Year Award at the Business Leader of the Year Awards.
  • Technology Initiative of the Year Award at the Business Leader of the Year Awards.
  • Life Insurance Company of the Year Award at National Award for Excellence in Financial Services.
    Customer Service Excellence Award at National Awards for Excellence in Financial Services.
  • Award for Marketing Excellence at National Awards for Excellence in Financial Services.
  • Certificate of Apprenticeship by Governor of Maharashtra for excellent work done during lockdown arising out of the COVID-19 Pandemic.

2021-22:

  • FICCI Special Jury Award at the Insurance Industry Awards 2021.
  • FICCI Best Insurance Campaign – Life Category at the Insurance Industry Awards 2021.
  • Recognised for Epitomising Excellence in the BFSI Industry at 50 Most Trusted BFSI Brands Awards 2021 by Marksmen Daily.
  • Best PSU award in the life insurance sector at Dun & Bradstreet PSU Awards.
  • Customer Service Excellence Award at National Award for excellence in BFSI.
  • ‘Insurance Company of the year’ at National Award for excellence in BFSI.
  • Certificate at ACEF 10th Global Customer Engagement Forum & Awards in ‘Television - Promotion’ for ‘Pehle LIC’.
  • Recognised as one of the Most Trusted Brands of India 2022 by Team Marksman India.
  • Recognised as one of the Best BFSI - Brands 2022 by the Economic Times at the Best Brands Awards 2022.
  • Customer Service Excellence Award at the World BFSI Congress & Awards.
  • Insurance Company of the Year Award at the World BFSI Congress & Awards.
  • Operational Excellence Initiative of the Year Award for ‘Ananda’ at the World BFSI Congress & Awards.
  • Technology Initiative of the Year Award for ‘Jeevan Sakshya’ at the World BFSI Congress & Awards.
  • Excellence in Claim Service Award at the World BFSI Congress & Awards.

Major events and milestones

  • 1956: Establishment of the Corporation.
  • 1956: Established foreign branches in Fiji and Mauritius.
  • 1960: Established foreign branch in United Kingdom.
  • 1963-64: Corporation undertook initiatives in becoming pioneer in installing computers with installation of two computer systems - one in Mumbai and one in Kolkata, with an aim to improve operations.
  • 1981: Implementation of ‘Reorganization Policy’ to give effect to larger scale decentralization of operations and decision-making.
  • 1989: Established an associate, LIC Housing Finance Limited.
  • 1989: Established LIC Mutual Fund as a trust.
  • 1989: Established a subsidiary, Life Insurance Corporation (International) B.S.C. (c), in Bahrain.
  • 1997: Implementation of Corporation’s ‘Metro Area Network’ and ‘Wide Area Network’ resulting in linking network of all branches.
  • 2000: Established a subsidiary, Life Insurance Corporation (Nepal) Ltd., in Nepal.
  • 2003: Established a subsidiary, Life Insurance Corporation (Lanka) Limited, in Sri Lanka.
  • 2006: Established ‘LIC’s Golden Jubilee Foundation’ with an aim to support construction of hospitals, schools, etc. and provide scholarships to meritorious students from marginalized communities.
  • 2007: Established a subsidiary, LIC Pension Fund Limited.
  • 2007: Entered into an agreement for implementation of ‘Enterprise Document Management System’ (EDMS) with an aim to convert all policy records into digital format.
  • 2008: Established a subsidiary, LIC Cards Services Limited, to provide credit card services.
  • 2012: Established a wholly owned subsidiary, Life Insurance Corporation (Singapore) Pte Ltd, in Singapore.
  • 2015: Established a subsidiary, Life Insurance Corporation (LIC) Bangladesh Limited, in Bangladesh.
  • 2019: Completed the acquisition of 51% stake in IDBI Bank.
  • 2020: Designated as Domestic Systemically Important Insurer (D-SII).
  • 2021: Launched Atma Nirbhar Agents New Business Application.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.