As the broader market is trading near all-time high levels, it is a bit difficult to find undervalued stocks. But not with InvestingPro+! Using its powerful screener - “Strong Upside” I’ve come across a gem that you must look at.
It is Life Insurance Corporation (NS:LIFI) of India, the largest life insurer in the with a market capitalization of INR 6,47,837, making it the 10th largest NSE-listed company. The current insurance penetration in India is quite low which makes this entire industry worth a look for the next 3-year horizon.
The company posted a record high revenue and net income in FY24, at INR 8,60,795 crore and INR 40,915 crore, respectively, translating into its earnings per share (EPS) of INR 64.69, the highest on record.
Even FIIs are enticed to get a state in this company and consequently ramped up their holdings from 0.06% in December 2023 to 0.19% in June 2024. This might seem like a small stake but considering the fact that 96.5% of holdings is with the government, it’s a decent stake.
Image Source: InvestingPro+
Coming to its valuations, investors do not need to hone their skills in financial modeling, sit for weeks to arrive at the true intrinsic value, etc. Just going to the profile page of InvestingPro+ will give you all the required information.
The fair value is currently INR 1,210.7 per share which depicts an 18.2% upside potential from the CMP of INR 1,024.2. This true worth of stocks has been derived after using 5 different financial models that use varied inputs to arrive at the respective value. This method allows to remove all extreme values and makes the whole analysis error- and bias-free.
Comparing it with peers, it is not just the largest in the business in terms of revenue and net income but also trading a very reasonable TTM P/E ratio of 15.4. Competitors such as SBI Life Insurance Company (NS:SBIL), HDFC Life Insurance (NS:HDFL) Company and ICICI Prudential Life Insurance Company are all trading at a TTM P/E of 92.8, 96 and 131.2, respectively.
You can also do a detailed peer comparison in InvestingPRo+ and explore many such lucrative opportunities using the powerful screeners of InvestingPro+.
Read More: Look at This “Score” And Make Your Investment Decision With Ease
X (formerly, Twitter) - Aayush Khanna
LinkedIn - Aayush Khanna