Life Insurance Corporation of India
NSE: LICILife Insurance Corporation of India: A 30-second snapshot
LICI trades at Rs 422.6, up 7.16% over the past 3 months and above both its 50-DMA (Rs 418.13) and 200-DMA (Rs 413.04), though still 7.68% below its 52-week high and down 3.79% over the trailing 12 months. The stock carries a trailing PE of 9.38x and forward PE of 7.50x against an ROE of 40.77%, with a mean analyst rating of 1.5 across 24 analysts (1-5 scale, lower = more constructive). Recent news flow has centered on reports that the Centre is weighing a stake sale in LIC and other PSUs to shore up fiscal finances amid oil-price strain, alongside a reported Rs 12,207 crore dividend payout to the government.
P/E
9.4
Forward P/E
7.5
ROE
+40.8%
Debt / Equity
0.43
Profit Margin
+6.3%
Div. Yield
+2.4%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
69/100
News
8 headlines · 2 positive · 3 negative
Divestment on speed dial as Centre lines up LIC, PSU stake sales to raise funds - telegraphindia.com
telegraphindia.com
Centre eyes LIC, PSU stake sales to cushion strain from oil crisis: Report - India Today
India Today
Amid fiscal worries, govt puts PSU share sales on fast track - Rediff
Rediff
LIC hands over Rs 12,207 cr dividend to Sitharaman - Asia Insurance Post
Asia Insurance Post
LIC taps Aadhaar's new digital verification platform to simplify KYC, customer onboarding: Dy CDO Pramod Kum.. - bfsi.economictimes.indiatimes.com
bfsi.economictimes.indiatimes.com
Recent context
- ·Multiple outlets (Telegraph India, India Today, Rediff) reported in early July that the Centre is fast-tracking PSU stake sales, including LIC, to cushion fiscal strain linked to an oil-price shock.
- ·LIC handed the government a Rs 12,207 crore dividend, reported July 29.
- ·LIC integrated Aadhaar's digital verification platform for KYC and customer onboarding, reported mid-July.
Strengths
- +ROE of 40.77%, with 4 of the tracked years above the 15% threshold and 5-year earnings growth of 33.1%.
- +Trailing PE of 9.38x and forward PE of 7.50x rank #1 among the listed sector peer set (AXISBANK 13.9x, HDFCBANK 16.3x, BAJAJFINSV 32.6x, BAJFINANCE 36.8x, HDFCLIFE 61.2x), alongside a #1 ROE ranking.
- +Debt-to-equity of 0.431 is low relative to the profitability generated.
- +Mean analyst rating of 1.5 across 24 analysts (1-5 scale, lower = more constructive), alongside a dividend yield of 2.36%.
Weaknesses
- −Free cash flow was positive in only 2 of the years captured in the persistence record, despite the high reported ROE.
- −Profit margin of 6.32% is comparatively narrow, and the consistencyScore sits at a middling 60.
- −Stock remains 7.68% below its 52-week high and down 3.79% over the trailing 12 months despite the recent 3-month bounce.
- −The peer set used for sector comparison mixes a life insurer with banks and NBFCs under a 'Banking' label, limiting the comparability of PE/ROE rankings, and the debt-trend field is unavailable in the persistence data.
Open questions
- ?Does the reported government interest in a further stake sale reflect near-term fiscal need or a longer-term disinvestment roadmap, and what would either imply for free-float supply?
- ?What explains free cash flow being positive in only a subset of the tracked years despite ROE above 40% -- does this reflect the insurance underwriting/investment cycle rather than core operating stress?
- ?How does LICI's PE/ROE ranking change if compared against life insurers specifically (e.g., HDFC Life) rather than banks and NBFCs with different capital structures?
- ?With the stock recovering 7.16% over three months but still below its 52-week high, what specific catalysts -- interest rates, disinvestment policy, dividend flows to the government -- appear to be shaping that path?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| LICI | Life Insurance Corporation of IndiaYou're viewing | 9.4 | +40.8% | 59 |
| Industry avg | across 5 peers | 32.2 | +14.1% | 49 |
| AXISBANK | Axis Bank Ltd. | 13.9 | +13.3% | 70 |
| HDFCBANK | HDFC Bank Ltd. | 16.3 | +13.8% | 66 |
| BAJFINANCE | Bajaj Finance Ltd. | 36.8 | +17.9% | 51 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 61.2 | +10.8% | 33 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 32.6 | +14.6% | 23 |
Technical state
Current price
₹422.60
SMA 50
₹418.13
SMA 200
₹413.04
RSI (14)
46.7 (neutral)
From 52w high
-7.7%
1Y return
-3.8%
3M return
+7.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumFree cash flow was positive in only 2 of the years captured in the persistence record, despite ROE of 40.77% and 5-year earnings growth of 33.1%; profit margin of 6.32% is also comparatively thin, and the debtTrend field is unavailable in the persistence data.
- medium3 of 8 tracked headlines in early July were negative, centered on reports (Telegraph India, India Today, Rediff) that the Centre is fast-tracking PSU stake sales, including LIC, to cushion fiscal strain linked to an oil-price shock; the same period also saw a reported Rs 12,207 crore dividend payout from LIC to the government.
- lowLICI is grouped under a sector tagged 'Banking' alongside AXISBANK, HDFCBANK, BAJFINANCE, BAJAJFINSV and HDFCLIFE; PE/ROE comparisons across a life insurer, banks and NBFCs carry limited comparability given differing business models and capital regimes, and priceChange1Y is null for all listed peers.
- 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
- News sentiment for the period leans negative (3 negative vs 2 positive, driven mainly by reports of a possible Centre stake sale), yet the stock is up 7.16% over the past 3 months and trades above both its 50-DMA (Rs 418.13) and 200-DMA (Rs 413.04).
- A mean analyst rating of 1.5 across 24 analysts (1-5 scale, lower = more constructive) and a forward PE of 7.50x sit alongside a 12-month price change of -3.79%, a gap between the sell-side/valuation read and trailing price performance.
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 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 31 Jul 2026 · rotates through NIFTY 500 every ~5 days