LIFE INSURA CORP OF INDIA

Value 0/— passed

• – Trading below our fair-value estimate
• – P/B below industry industry P/B not on the free feed
• – P/E below industry industry P/E not on the free feed
• – P/E below peer average peer P/Es land after the next refresh
• – P/S sane vs its own history needs multi-year P/S (Tier B)
• – More than 20% below fair value

Future 3/4 passed

• ✓ Earnings trending up 16.9%/yr over 3yr
• – Growth beats the industry industry growth not on the free feed
• ✓ Earnings growth beats the market 16.9%/yr vs market ~9.0%
• ✓ Revenue trending up 7.3%/yr over 3yr
• ⚠ Return on equity improving ROE 32.5% vs 77.9% 3yr ago

Past 4/4 passed

• ✓ Earnings grew over the period 360.0B → 574.5B
• – High-quality earnings (few one-offs) one-off detection deferred — needs statement detail
• ✓ Growth accelerating vs its average latest 18.9%/yr vs 16.9% average
• ✓ Revenue higher than five years ago 7.9T → 9.7T
• ✓ Return on equity above 20% ROE 40.8%

Health 2/2 passed

• – Debt/equity falling over time n/a
• ✓ Debt is under 40% of equity debt/equity 0%
• – Debt well covered by cash flow
• ✓ Interest comfortably covered by profit EBIT covers interest 432.5×
• – Short-term assets cover long-term debt n/a
• – Short-term assets cover short-term bills n/a

Dividend 2/3 passed

• – Dividend covered by earnings and cash flow n/a
• – Dividend growing over time n/a
• – No dividend cut in recent years n/a
• ✓ Payout ratio under 75% payout 13.2% of earnings
• ✓ Yield beats the market yield 2.36% vs market ~1.5%
• ⚠ Yield in the top quartile of payers yield 2.36% vs 2.68% cut among the 60 payers Otto tracks