EFU Life Assurance (KAR:EFUL) Beneish M-Score: -1.69 (As of Jun. 28, 2026)


KAR:EFUL EFU Life Assurance Ltd KAR:EFUL
65 GF Score
Price ₨154.97
GF Value ₨176.51
Valuation Modestly Undervalued
! 7 Warning Signs
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What is EFU Life Assurance Beneish M-Score?

EFU Life Assurance KAR:EFUL 65 Beneish M-Score is -1.69 as of Jun. 28, 2026. GuruFocus rates KAR:EFUL with a GF Score™ of 65/100 and a GF Value™ of ₨176.51 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 402 Insurance companies, EFU Life Assurance ranks worse than 89.8% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.69 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for EFU Life Assurance's Beneish M-Score or its related term are showing as below:

KAR:EFUL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.53   Med: -1.94   Max: 0.51
Current: -1.69

During the past 13 years, the highest Beneish M-Score of EFU Life Assurance was 0.51. The lowest was -2.53. And the median was -1.94.

KAR:EFUL
65GF Score
EFU Life Assurance Ltd KAR:EFUL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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EFU Life Assurance Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of EFU Life Assurance for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.7067+0.528 * 1+0.404 * 1+0.892 * 0.9039+0.115 * 1.0313
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9602+4.679 * 0.061303-0.327 * 1.224
=-1.69

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₨4,742 Mil.
Revenue was 7276.884 + 26258.776 + 36120.842 + 21250.958 = ₨90,907 Mil.
Gross Profit was 7276.884 + 26258.776 + 36120.842 + 21250.958 = ₨90,907 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨288,055 Mil.
Property, Plant and Equipment(Net PPE) was ₨3,946 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨899 Mil.
Selling, General, & Admin. Expense(SGA) was ₨1,091 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨1,138 Mil.
Net Income was 394.792 + 626.531 + 598.778 + 575.245 = ₨2,195 Mil.
Non Operating Income was 0 + -3.503 + 0 + 0.646 = ₨-3 Mil.
Cash Flow from Operations was -3460.753 + -1978.463 + -4838.778 + -5182.5 = ₨-15,460 Mil.
 Total Receivables was ₨3,074 Mil.
Revenue was 19569.612 + 34972.605 + 22841.645 + 23193.966 = ₨100,578 Mil.
Gross Profit was 19569.612 + 34972.605 + 22841.645 + 23193.966 = ₨100,578 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨263,653 Mil.
Property, Plant and Equipment(Net PPE) was ₨3,601 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨852 Mil.
Selling, General, & Admin. Expense(SGA) was ₨1,257 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨851 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(4742.229 / 90907.46) / (3074.178 / 100577.828)
=0.052165 / 0.030565
=1.7067

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(100577.828 / 100577.828) / (90907.46 / 90907.46)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 3946.388) / 288054.528) / (1 - (0 + 3601.284) / 263653.371)
=0.9863 / 0.986341
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=90907.46 / 100577.828
=0.9039

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(852.147 / (852.147 + 3601.284)) / (899.047 / (899.047 + 3946.388))
=0.191346 / 0.185545
=1.0313

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1091.003 / 90907.46) / (1257.164 / 100577.828)
=0.012001 / 0.012499
=0.9602

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1138.019 + 0) / 288054.528) / ((850.952 + 0) / 263653.371)
=0.003951 / 0.003228
=1.224

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2195.346 - -2.857 - -15460.494) / 288054.528
=0.061303

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

EFU Life Assurance has a M-score of -1.69 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.69 mean?
EFU Life Assurance (KAR:EFUL) has a Beneish M-Score of -1.69 as of Jun. 28, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on EFU Life Assurance and its competitors. According to the industry distribution chart, EFU Life Assurance ranks #361 out of 402 companies in the Insurance industry, placing it in the top 89.8%.
Is EFU Life Assurance's Beneish M-Score too high?
EFU Life Assurance's current Beneish M-Score is -1.69. Based on the distribution chart, EFU Life Assurance ranks #361 out of 402 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, EFU Life Assurance has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EFU Life Assurance's Beneish M-Score compare to BRK.A and AIG?
According to the Insurance industry distribution chart, EFU Life Assurance ranks #361 out of 402 companies for Beneish M-Score. This places EFU Life Assurance in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on EFU Life Assurance and its competitors. EFU Life Assurance's current Beneish M-Score is -1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EFU Life Assurance stock overvalued right now?
Based on GuruFocus' analysis, EFU Life Assurance (KAR:EFUL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨176.51, compared to a current price of ₨154.97 — trading 12.2% below its estimated fair value. The current Beneish M-Score is -1.69. EFU Life Assurance's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For EFU Life Assurance (KAR:EFUL), the current Beneish M-Score is -1.69 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is EFU Life Assurance (KAR:EFUL) Overvalued in 2026?

Based on GuruFocus' analysis, EFU Life Assurance stock appears to be undervalued. The current stock price of ₨154.97 is trading 12.2% below its estimated GF Value™ of ₨176.51. GuruFocus considers EFU Life Assurance to be Modestly Undervalued.

Key valuation signals for KAR:EFUL:

  • Beneish M-Score: -1.69
  • GF Value™: ₨176.51 vs. price of ₨154.97 (12.2% below fair value)
  • GF Score™: 65/100 with 7 warning signs

No single metric tells the full story. See the KAR:EFUL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

EFU Life Assurance Business Description

Address 8th East Street, Plot No. 112, EFU Life House, Phase 1, DHA, Karachi, SD, PAK
EFU Life Assurance Ltd is an insurance company that operates as a life and health insurer and a family takaful operator, positioning itself as a provider of comprehensive protection, savings, wellbeing, and retirement solutions. Its products and services include life insurance, savings and investment plans, health and wellness solutions, retirement and pension offerings, and Shariah-compliant takaful products, catering to individuals, families, and corporate clients. The company operates across key business segments, including individual life, group life, health, and family takaful, along with digital and inclusive insurance initiatives.
65GF Score

Get the complete analysis for KAR:EFUL

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨154.97
Price
₨176.51
GF Value