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Life Insurance Corporation (LICI) Fair Value & Analysis

Financial Services · IN · Market cap ₹5.5T

LI Life Insurance Corporation LICI · NSE
Price₹387.55
Fair Value₹590.43
Upside+52.4%
Quality47/100
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Expensive Growth
Thin margins · 6.6% net margin
Low debt · negative free cash flow
2.27% dividend yield
Mixed vs. peers (6/13)
Moderate moat 52/100
Evidence: High Range ₹442.82 – ₹738.03 Share as image

Fair value as of: Jul 16, 2026

From 17 valuation models · updated 22 days ago

Share price −11.0% over the past month.

Below-average quality, screening 52% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹442.82). The market is more pessimistic than our downside scenario.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (4 years)

₹572.85 ₹252.86 Fair Value ₹590.43 May 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

51‑month range ₹252.86 – ₹572.85 · fair‑value band ₹442.82 – ₹738.03 · the ₹387.55 price screens below the ₹590.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Life Insurance Corporation (LICI) currently trades at ₹387.55, while our model-based Fair Value estimate is ₹590.43, implying the stock looks roughly 52.4% undervalued today. We read business quality at 47/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Life Insurance Corporation generated revenue of ₹9.8T at a net margin of 6.6%. Revenue grew 14.8% year over year. It earns a return on equity of 42.4%. The balance sheet holds a net cash position of ₹720B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹442.82 (bear case) to ₹738.03 (bull case); at ₹387.55, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 1% fair-value upside, at 52%, LICI screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹357.30 ₹546.45 ₹6,295 76
ROIC Compounder ₹488.66 ₹592.81 ₹705.68 72
Gordon GGM ₹57.98 ₹126.59 ₹212.99 70
All 17 models by family
DCF Models
Owner Earnings ₹605.33 ₹951.62 ₹1,517 31
Earnings-Based
Graham-Dodd ₹308.84 ₹1,030 ₹1,379 54
Lynch FV ₹233.67 ₹333.82 ₹433.96 50
PEG = 1.0 ₹233.67 ₹333.82 ₹433.96 46
EPV ₹465.99 ₹538.17 ₹602.34 59
Dividend Discount
Gordon GGM ₹57.98 ₹126.59 ₹212.99 70
DDM Multi-Stage ₹57.98 ₹100.96 ₹131.93 61
Multiples
P/E Multiple ₹681.26 ₹908.35 ₹1,135 63
P/S Multiple ₹579.07 ₹772.10 ₹965.12 58
P/B Multiple ₹314.61 ₹419.48 ₹524.35 55
EV/EBIT ₹670.52 ₹875.05 ₹1,080 53
EV/EBITDA ₹503.99 ₹653.01 ₹802.03 54
EV/Revenue ₹470.53 ₹647.79 ₹825.05 43
Asset-Based
NCAV (Graham) ₹69.91 ₹93.68 ₹139.83 50
Economic Profit
Residual Income ₹357.30 ₹546.45 ₹6,295 76
ROIC Compounder ₹488.66 ₹592.81 ₹705.68 72
Growth Earnings
Growth-Adj P/E ₹580.62 ₹829.46 ₹1,078 68

Widest divergence: DCF Models (₹951.62) versus Asset-Based (₹93.68). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹9.8T
Revenue growth (YoY) +14.8%
Net margin 6.6%
Return on equity 42.4%
Free cash flow −₹273B FY2026
P/E ratio 9.6
More key figures
Operating margin 5.5%
EPS (TTM) ₹45.43
Dividend yield 2.3%
EPS growth (YoY) +55.5%
Net cash ₹720B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 33 · Market factors (momentum, volatility) 50

Profitability 35
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Life Insurance Corporation of India provides life insurance products in India, Fiji, Mauritius, and the United Kingdom. It offers insurance plans, including endowment, whole life, term insurance plans, money back, and term assurance plans, as well as riders comprising accidental death and disability benefit, critical illness benefit, and premium waiver …

Full company description

Life Insurance Corporation of India provides life insurance products in India, Fiji, Mauritius, and the United Kingdom. It offers insurance plans, including endowment, whole life, term insurance plans, money back, and term assurance plans, as well as riders comprising accidental death and disability benefit, critical illness benefit, and premium waiver benefit riders. The company also provides pension, unit linked, micro insurance, withdrawal, and health plans, as well as various group schemes. Life Insurance Corporation of India was incorporated in 1956 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Life Insurance Corporation reported revenue of ₹9.8T in FY2026 versus ₹7.3T in FY2022, a compound +7.5%/yr. Reported net income was ₹575B in FY2026, compounding +93.2%/yr from FY2022.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹9.8T
Latest YoY
+9.7%
Avg. growth/yr (3Y)
+7.1%
Avg. growth/yr (5Y)
+7.3%
Avg. growth/yr (7Y)
+8.2%
Revenue +7.5%/yr
FY22 ₹7.3T
FY23 ₹8.0T
FY24 ₹8.5T
FY25 ₹8.9T
FY26 ₹9.8T
Net income +93.2%/yr
FY22 ₹41.2B
FY23 ₹360B
FY24 ₹409B
FY25 ₹483B
FY26 ₹575B

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Cite: Fair Value Calculator (2026). "Life Insurance Corporation Fair Value". https://www.fairvalue-calculator.com/stock/LICI

Peer Group

Insurance - Life · 96 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Bottom 25%
Fair Value upside +52% · Above median
Return on equity (TTM) 42% · Top 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) 7% · Below median
Operating margin (TTM) 6% · Bottom 25%
Revenue growth 15% · Above median
Dividend yield (TTM) 2.3% · Below median

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 9.6× · Cheaper than median
P/B 3.13× · Pricier than 75% of peers
P/S (TTM) 0.57× · Cheaper than median
EV/EBITDA 8.9× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 28
FUTURE 74 · sector 44
PAST 100 · sector 42
HEALTH 100 · sector 85
DIVIDEND 45 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥38.72 ¥70.87 +83%
Ping An Insurance (Group) Company 601318 ¥49.60 ¥96.76 +95%
AIA Group 1299 HK$75.55 HK$7.88 -90%
Manulife Financial Corporation MFC C$58.52 C$45.13 -23%
Great-West Lifeco Inc GWO C$92.34 C$59.64 -35%
Fubon Financial Holding 2881 124.50 TWD 115.05 TWD -8%
Cathay Financial Holding 2882 94.00 TWD 94.95 TWD +1%
Samsung Life Insurance Co 032830 337,500 KRW 166,710 KRW -51%
China Pacific Insurance (Group) Co 601601 ¥29.75 ¥59.50 +100%
Prudential plc PUKN 545.00 MXN 722.72 MXN +33%

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Frequently asked questions

Is Life Insurance Corporation (LICI) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹590.43 versus a price of ₹387.55, about +52% (undervalued).
What is the fair value of LICI?
Our model-based fair value for Life Insurance Corporation is ₹590.43 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹387.55.
What is the quality score of LICI?
Life Insurance Corporation has a Quality Score of 47/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Life Insurance Corporation (LICI)?
Life Insurance Corporation reported trailing-twelve-month revenue of about ₹9.8T (latest available figure, as of Jul 16, 2026).
What is the net profit margin of LICI?
The net profit margin of Life Insurance Corporation is about 6.6%, meaning it keeps roughly 6.6% of revenue as net income. Based on the latest reported figures.
Does Life Insurance Corporation pay a dividend?
Life Insurance Corporation currently shows a dividend yield of about 1.25% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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