Forum

सेयर दिलका बात है अरु दिमागका??

Few comparative insights between NLIC and LICN

Here I have observed few comparative facts between giant life Insurance stocks: nlic and licn.

My observation flows on paid up approach because the volume of a stock we purchase is directly relates the paid up and the worth is directly indirectly the outcome of volume increase.

Though for me both stocks are rejoicing for long run!

I do not recommend to buy nor sell decisions.Do whatever at your own risk!

CURRENT PAID UP
NLIC:[2.16 arba]
LICN:[0.85 arba]

Currently licn has 154% lessor paid up which will be limited to 103% lesser after licn will adjust 25% bonus share value in its paid up(1.06 arba).

Both have enormous growth !

If BEEMA SAMITI gives the minimum boundary of paid up to 5 arba,then
current 1 kitta of nlic will be at least 2 kitta and current 1 kitta of licn will be at least 4 kitta after the issuance FPO of both.

Long term investors wants to multiply their volume.Hence the paid up is the most crucial part of a growing life insurance!

I speculate while a share of such company becomes twice the worth becomes at least four times.If one share becomes four then the worth becomes 10 times.

{Please mark my point till the date both companies will reach paid up same level;let's say 5 arba then,
Rs. 100 in NLIC will be Rs.400
Rs. 100 in LICN will be Rs.1000}

RESERVE & SURPLUS
nlic:[26.54 karod] which is 13% of paid up
licn:[19.74 karod] which is 18% of paid up
Higher the reserve stronger the stock,so licn looks strong.

LIFE INSURANCE FUND
nlic:[27.35 arba] 13 times higher than the paid up.
licn:[23.32 arba] 22 times higher than the paid up.
This is the major source for income generation!
licn looks quite better.

CATASTROPHE RESERVE
nlic:[ 9.07 karod] 4.2% of paid up.
licn:[ 3.12 karod] 3.0% of paid up.
Both company have poor provision though slightly nlic looks better.

FIXED ASSETS
nlic:[32.76 karod] 15% of paid up.
licn:[21.72 karod] 20% of paid up.
licn has the higher % fixed assets of paid up!

LONG TERM INVESTMENT
nlic:[15.4 arba] 7 times higher than its paid up.
licn [6.08 arba] 6 times higher than its paid up.
It looks better of nlic.

SHORT TERM INVESTMENT
nlic:[09.92 arba] 05 times higher than its paid up.
licn:[13.85 arba] 13 times higher than its paid up.
wow!!! licn looks quite better.

NET CURRENT ASSETS
nlic:[10.86 arba] 05 times higher than its paid up.
licn:[15.44 arba] 14 times higher than its paid up.
Wow!!! Again licn better!

NET PROFIT
nlic:[14.4 karod] 6.67% of its paid up.
licn [3.26 karod] 3.07% of its paid up
It vary after actuary valuation though nlic is quite better.

TOTAL PREMIUM COLLECTION
nlic:[From 10.21 lakhs policies 4.13 arba] 1.9 times higher than its paid up.
licn:[From 05.57 lakhs policies 2.93 arba] 2.7 times higher than its paid up.
licn looks better!

CLAIM PAID/UNPAID
Paid :[nlic:55.42 karod] and [licn:29.53 karod]
Unpaid:[nlic: 22.82 karod] and [licn:01.21 Karod]
If profit has to provision to pay claims ,definitely there is negative impact on nlic.But licn looks good!

PROMOTER:ORDINARY share::80:20 in both.

MARKET PRICE
nlic :[3241]
licn :[3104]
Both are the adjusted price after 25% bonus though licn(3880) has not book closed for the purpose .
Definately licn is the better option.

FPO
Both have the chances to issue fpo but nlic has declared and licn not yet!
So nlic is better.

BRANCHES
nlic: [29] Serving from 104 locations
Licn :[34]
Including corporate office there are 35 offices of licn but 29 branches of nlc.There is no further information on 104 locations.This will simply more easy to expand policies and services for licn.

MANAGEMENT & BOD
nlic:[Not disclosed in its web;anybody knows?]
licn:[Both are highly qualified;since members in BOD are renowned members of LIC India and Vishal group]

ISO CERTIFICATE
nlic:[NO]
licn:[Yes]
Since ISO certificate is international recognition and acheivement.LICN has good reputation .

PRODUCTS & SERVICES
nlic:[Slightly lessor product and services could be seen on the web.]
licn:[sufficient numbers of product and service are seen in the web.]

JOINT VENTURE
nlic:[Private Investor/Business Houses]
licn:[ The world heighest policy holder/Indian government owned LIC has 55% investment,Vishal Group a business house 25%]

Hence
Lets compare
NLIC=NABIL
LICN=SCB/EBL.

Still nabil has better performance but why investors pay more money to ebl and scb....point to be noted!!