Friday, May 22, 2020

SBI Life Insurance Company Ltd – Fundamental Analysis & Valuations


SBI Life Insurance Company Ltd closes   at  730.25   with  a  flat note   on    22-May- 2020   with formation of  a  Small Green  Candle    on Daily  Price Chart.
The company has collected Net premium  of Rs.40324 Cr & Posted Net Profit of Rs.1422.00 Cr in FY2020 and expected to  collect Net premium   of Rs.46495.00 Cr & Net Profit of Rs.1616.00 Cr in FY2021 &   collect Net premium   of Rs.56643.00 Cr & Net Profit of Rs.1826.0 Cr in FY2022 .
Valuations  : The Company is now Trading at X3.1  of its Value. We have valued the company with its full  Financial  year 2020 earnings  ( PAT and X 2.06 of its FY21 earnings with a Premium  of ~106%  and  X 2.38 of its FY22 earnings with a Premium  of ~238% .
Market Cap / Networth is now 9.6 & Margin of Safety (1Yr Bond Yield: Value>1 ) is 0.5 ie. It has to correct by 50%. The Best Price on next 2years earnings and past 1 year earnings ( Average ) on EPV method is Rs.641.00.
Disclaimer : We are / may going to take exposure shortly.
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