Life Insurance Corporation of India
NSE: LICILife Insurance Corporation of India: A 30-second snapshot
LIC of India (LICI) trades at 799.15, a trailing PE of 9.5x and forward PE of 8.0x, reflecting the lowest PE among its assigned peer group of six. Revenue has compounded at 16.1% over five years, yet the stock is 2.0% lower over the past year and sits 6.8% below its 200-DMA of 856.14. Quality score of 49 and consistency score of 66 place it in the middle of the peer pack.
P/E
9.5
Forward P/E
8.0
ROE
—
Debt / Equity
—
Profit Margin
+6.0%
Div. Yield
+1.5%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
63/100
News
8 headlines · 2 positive · 3 negative
Life Insurance Corporation of India Q4 Results - Mint
Mint
India Approves 100% Foreign Investment in Insurance Sector - India News Network
India News Network
Life Insurance Corporation of India Appoints Varadarajan Muthuvenkataraman as Additional Executive Director (Enterprise Risk Management) - scanx.trade
scanx.trade
A first: Life insurers collected ₹4 trn in new business premium in FY26 - Business Standard
Business Standard
LIC's $2 billion contrarian bet: 10 stocks the DII giant bought while the market bled - The Economic Times
The Economic Times
Recent context
- ·Life insurers collectively crossed 4 trillion rupees in new business premium in FY26 (Business Standard, April 2026), a sector milestone that positions LICI as the largest participant in an industry at a record volume.
- ·The Indian government approved 100% foreign investment in the insurance sector (May 2026), a structural policy shift that could alter competitive dynamics for PSU-owned incumbents like LICI.
- ·LIC deployed approximately $2 billion as a contrarian domestic institutional buyer during a period of broad market weakness (Economic Times, May 2026), reflecting its dual role as both a listed company and a systemic market participant.
Strengths
- +Lowest PE in the peer group at 9.5x trailing and 8.0x forward, compared with HDFCBANK at 17.2x, BAJFINANCE at 29.8x, and HDFCLIFE at 68.5x — a significant valuation gap relative to sector comparables.
- +5-year revenue CAGR of 16.1% indicates top-line expansion has been sustained across the measurement window.
- +Dividend yield of 1.5% provides an income component, consistent with LICI's status as a government-owned enterprise with a regular distribution history.
- +Mean analyst rating of 1.65 across 24 analysts (1-5 scale, lower = more constructive), with coverage of 24 analysts indicating broad institutional attention for a PSU insurer.
Weaknesses
- −Price has traded below the 200-DMA (856.14) with the current gap at 6.8%; the stock is 17.4% off its 52-week high and down 8.7% over the past three months.
- −ROE data is absent, preventing a full profitability assessment; without it, the quality score of 49 relies on incomplete inputs.
- −FCF was positive in only 2 of the available persistence years, raising questions about the consistency of free cash generation relative to reported earnings.
- −Profit margin of 5.97% is thin for a large-cap insurer; the insurance sector's embedded-value accounting makes headline margins structurally different from non-insurance peers, but the absolute level warrants scrutiny.
Open questions
- ?Does LICI's structurally lower PE reflect a genuine valuation gap relative to peers, or does the insurer's unique accounting framework (embedded value, participating policyholder funds) make direct PE comparison with banks and holding companies inappropriate?
- ?How has LICI's new business premium market share trended over the past three years relative to private insurers such as HDFC Life — and does the sector's 100% FDI approval accelerate or moderate that trend?
- ?Given that FCF was positive in only 2 of the available persistence years, what portion of reported earnings reflects non-cash movements in policyholder reserves versus distributable cash flow?
- ?How does LICI's role as a large domestic institutional investor interact with its obligations to policyholders — and does that dual role create any alignment or conflict of interest for minority shareholders?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LICI | Life Insurance Corporation of IndiaYou're viewing | 9.5 | — | 49 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹799.15
SMA 50
₹795.91
SMA 200
₹856.14
RSI (14)
48.8 (neutral)
From 52w high
-17.4%
1Y return
-2.0%
3M return
-8.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumPrice at 799.15 is below the 200-DMA (856.14) and has been for an extended period; the stock is down 17.37% from its 52-week high and -2.02% over 12 months, underperforming relative to its 5-year revenue growth of 16.1%.
- mediumROE data is unavailable for LICI, leaving a critical profitability dimension unmeasured. FCF was positive in only 2 of the years available in the persistence record, and profit margin of 5.97% is narrow for a large-cap life insurer.
- lowLICI is grouped with banking and diversified-finance peers (HDFCBANK PE 17.2x, BAJFINANCE PE 29.8x, HDFCLIFE PE 68.5x); direct PE comparisons carry limited meaning given the structural differences between a state-owned life insurer and private-sector banks or holding companies.
- lowOnly 8 news items were captured for this run, of which 3 were negative and 3 neutral; thin coverage limits the reliability of the news sentiment signal.
Cross-section contradictions
- 5-year revenue CAGR of 16.1% and a forward PE of 8.0x suggest an improving earnings trajectory, yet the stock is down 2.02% over 12 months and trades 6.8% below its 200-DMA — a divergence between reported growth and recent price action.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days