Life Insurance Corporation of India’s fundamental analysis highlights key financial metrics including market capitalisation of ₹700,588.37 crore, PE ratio of 17.12 and return on equity of 63.31%. These figures reflect the company’s financial health and current market valuation.
Content:
- Life Insurance Corporation of India Overview
- Life Insurance Corporation of India Financial Results
- Life Insurance Corporation of India Financial Analysis
- Life Insurance Corporation of India Company Metrics
- Life Insurance Corporation of India Stock Performance
- Life Insurance Corporation of India Peer Comparison
- Life Insurance Corporation of India Shareholding Pattern
- Life Insurance Corporation of India History
- How To Invest In Life Insurance Corporation of India Share?
- Life Insurance Corporation of India Limited Fundamental Analysis – FAQs
Life Insurance Corporation of India Overview
Life Insurance Corporation of India is the largest life insurance provider in India. It operates in the insurance sector, offering a wide range of individual and group insurance solutions, including participating, non-participating, and unit-linked products.
The company has a market capitalisation of ₹700,588.37 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). LIC was listed on May 17, 2022. Currently, the stock is trading 10.32% below its 52-week high and 85.43% above its 52-week low.
Life Insurance Corporation of India Financial Results
Life Insurance Corporation of India demonstrated significant growth from FY 22 to FY 24, with sales increasing from ₹723,813 crore to ₹845,966 crore and net profit rising from ₹4,131 crore to ₹40,947 crore. The company maintained a steady OPM and saw a substantial increase in EPS.
1. Revenue Trend: Sales grew from ₹723,813 crore in FY 22 to ₹784,628 crore in FY 23, and further to ₹845,966 crore in FY 24, indicating strong revenue growth.
2. Profitability: Operating Profit Margin (OPM) fluctuated, peaking at 5% in FY 23, and then decreasing to 3% in FY 24, reflecting variable operational efficiency.
3. Earnings per Share (EPS): EPS significantly increased from ₹6.52 in FY 22 to ₹56.91 in FY 23, and further to ₹64.69 in FY 24, indicating strong profit growth per share.
4. Financial Position: The financial position improved with EBITDA increasing from ₹6,174 crore in FY 22 to ₹44,356 crore in FY 24, showcasing robust financial health and effective management.
Life Insurance Corporation of India Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 845966 | 784628 | 723813 |
| Expenses | 816471 | 748688 | 718569 |
| Operating Profit | 29495 | 35939 | 5245 |
| OPM % | 3 | 5 | 1 |
| Other Income | 14861 | 7800 | 929.71 |
| EBITDA | 44356 | 43739 | 6174 |
| Interest | 0 | 77.43 | 86.7 |
| Depreciation | 0 | 466.38 | 436.19 |
| Profit Before Tax | 44356 | 43195 | 5651 |
| Tax % | 13.75 | 12.65 | 141.79 |
| Net Profit | 40947 | 35995 | 4131 |
| EPS | 64.69 | 56.91 | 6.52 |
| Dividend Payout % | 15.46 | 5.27 | 23.01 |
* Consolidated Figures in Rs. Crores
Life Insurance Corporation of India Company Metrics
Life Insurance Corporation of India has a market capitalization of ₹700,588.37 crore and a book value of ₹131 per share. The face value is ₹10 per share. With a 0.17 asset turnover ratio, 63.31% ROE, ₹14,560.43 crore quarterly EBITDA, and a 0.9% dividend yield, it demonstrates strong financial performance.
Market Capitalization: Market Capitalization represents the total market value of Life Insurance Corporation of India’s outstanding shares, amounting to ₹700,588.37 crore.
Book Value: The book value per share of Life Insurance Corporation of India is ₹131 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value: The face value of Life Insurance Corporation of India’s shares is ₹10, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio: The Asset Turnover Ratio of 0.17 measures how efficiently Life Insurance Corporation of India uses its assets to generate sales revenue or sales income.
Return on Equity (ROE): The ROE of 63.31% measures Life Insurance Corporation of India’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q): The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Life Insurance Corporation of India is ₹14,560.43 crore, indicating the company’s operating performance.
Dividend Yield: The dividend yield of 0.9% shows the annual dividend payment as a percentage of Life Insurance Corporation of India’s current share price, indicating the return on investment from dividends alone.
Life Insurance Corporation of India Stock Performance
Life Insurance Corporation of India delivered a robust one-year return of 76.6%, indicating strong growth potential for investors.
| Period | Return on Investment (%) |
| 1 Year | 76.6 |
Example: If an investor had invested ₹10,000 in Life Insurance Corporation of India’s stock:
1 year ago, the investment would be worth ₹1,766.
Life Insurance Corporation of India Peer Comparison
Life Insurance Corporation of India, with a CMP of ₹1133.45 and a P/E ratio of 17.16, has a market cap of ₹716,843.18 Cr and a one-year return of 76.63%. Compared to peers like New India Assurance with a 99.41% return and General Insurance with 91.31%, LIC demonstrates strong performance within the insurance sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| Life Insurance | 1133.45 | 17.16 | 716843.18 | 76.63 | 3844373 | 8 | 0.93 | 7.25 | 4.87 |
| SBI Life Insurance | 1725.1 | 85.03 | 172812.41 | 29.28 | 813728 | 10.67 | 0.96 | 3.69 | 19.82 |
| HDFC Life Insur. | 702.4 | 92.4 | 151191.21 | 9.75 | 2904927 | 11.01 | 0.97 | 2.78 | 20.27 |
| ICICI Pru Life | 739.25 | 122.61 | 106523.57 | 28.42 | 1283202 | 11.88 | 0.99 | 0.99 | 41.77 |
| ICICI Lombard | 1965.95 | 45.99 | 96969.22 | 45.04 | 730957 | 4.7 | 0.97 | 3.25 | 19.99 |
| General Insurance | 389.5 | 10.21 | 68290.22 | 91.31 | 1348683 | -5.45 | 0.83 | 16.74 | -3.83 |
| New India Assura | 251.75 | 37.77 | 41408.86 | 99.41 | 2590277 | -8.82 | 0.78 | 22.47 | -13.47 |
Life Insurance Corporation of India Shareholding Pattern
Life Insurance Corporation of India saw a slight change in its shareholding pattern from December 2023 to June 2024. Promoter holdings remained stable at 96.5%, while FII holdings increased from 0.06% to 0.19%. DII holdings rose slightly, and retail and others’ shares remained relatively stable.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 96.5 | 96.5 | 97 |
| FII | 0.19 | 0.14 | 0.06 |
| DII | 0.94 | 0.85 | 1 |
| Retail & others | 2.37 | 2.49 | 2.43 |
Life Insurance Corporation of India History
Life Insurance Corporation of India (LIC) is the largest insurance company in India, offering a comprehensive range of individual and group insurance solutions. Established in 1956, LIC has played a pivotal role in the country’s financial landscape, providing life insurance coverage to millions of Indians.
LIC’s product portfolio is diverse, encompassing various insurance and investment products. These include protection plans, pension schemes, savings products, investment-linked policies, annuities, and health insurance. The company caters to different customer segments through participating, non-participating, and unit-linked lines of business.
With approximately 44 products, including 33 individual and 11 group offerings, LIC serves a wide range of customer needs. Some of its notable insurance plans include Saral Jeevan Bima, Saral Pension, Arogya Rakshak, Dhan Rekha, and Bima Jyoti. This extensive product range reflects LIC’s commitment to addressing the diverse financial protection and investment requirements of the Indian population.
How To Invest In Life Insurance Corporation of India Share?
To invest in Life Insurance Corporation of India shares, start by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for LIC shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Life Insurance Corporation of India Limited Fundamental Analysis – FAQs
Fundamental analysis of Life Insurance Corporation of India examines key financial metrics: Market Cap (₹700,588.37 crore), PE Ratio (17.12), Debt to Equity (0), and Return on Equity (63.31%). These indicators provide insights into the company’s financial health, market valuation, and profitability in the insurance sector.
The market capitalization of Life Insurance Corporation of India is ₹700,588.37 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Life Insurance Corporation of India (LIC) is the largest life insurance provider in India. It offers a wide range of individual and group insurance products, including protection plans, pension schemes, savings products, and health insurance. LIC plays a significant role in India’s financial sector.
LIC is primarily owned by the Government of India. Before its IPO in May 2022, the government-owned 100% of LIC. After the IPO, the government retains a majority stake, with a portion of shares now held by public investors.
The main shareholders of Life Insurance Corporation of India include the Government of India as the majority stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Life Insurance Corporation of India operates in the insurance industry, specifically in the life insurance sector. It is the largest life insurer in India, offering a wide range of insurance and investment products to individuals and groups, playing a crucial role in the country’s financial services sector.
To invest in Life Insurance Corporation of India shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if the Life Insurance Corporation of India is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like P/E ratio and price-to-book value, and compare them with industry peers for a balanced assessment.
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