Case study

LICI

Life Insurance Corporation of India Ltd.

Screens attractive1y model +6.9%

Each stock's 10,000-path forecast, rendered as light.

88Score

Life Insurance Corporation of India Ltd. (LICI) Stock Analysis & Case Study

Is LICI a good buy? The data-driven verdict.

Life Insurance Corporation of India Ltd. (LICI) trades at ₹394,on the numbers it screens attractive, a Downstox Snapshot Score of 88/100.

On the numbers, Life Insurance Corporation of India Ltd. (LICI) screens attractive, a Downstox Snapshot Score of 88/100, weighing inexpensive at 8.3× earnings, ROE of 37.8%, a 60% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027-2031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on LICI

The puzzle with LICI is the gap between two stories the numbers tell. A P/E near single digits and a 37.8% ROE usually means either a cash machine the market trusts or a giant the market doubts can keep growing. The 2.26% yield and high ROCE suggest real earning power, yet the Piotroski score sitting at the middle of the scale hints the underlying quality trend is mixed. Watch whether margin and accrual quality firm up, since cheapness only rewards you if the franchise stays as strong as the ratios imply.

Downstox editorial view, written by our own analysts on 23 Jun 2026. The figures quoted were accurate then; see the live ratios above for today's numbers. Information, not investment advice.

LICI fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹4.98L Cr
Current price
₹394
P/E ratio
8.3×
Dividend yield
2.54%
ROCE
35.1%
ROE
37.8%
Piotroski F-Score
6/8

How LICI ranks against the 2,373 companies in our screener

We do not hold book value or debt-to-equity ratio figures for LICI, as of 9 Aug 2026, so those are not ranked here.

Is LICI overvalued? LICI P/E vs its Insurance

LICI's P/E of 8.3× sits below the Insurance peer median of 24.2×, so on earnings it screens cheaper than peers, while its 2.54% dividend yield is above the peer median of 0.45%.

LICI P/E
8.3×
Peer median P/E
24.2×
LICI div yield
2.54%
Peer median yield
0.45%

LICI share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 4.2y of LICI history (-3%/yr drift, 26%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
LICI 2027₹305₹421₹583+7%
LICI 2028₹283₹451₹716+14%
LICI 2029₹273₹482₹849+22%
LICI 2030₹265₹515₹1,001+31%
LICI 2031₹263₹551₹1,156+40%

Median (P50) is the central estimate; the P10-P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability LICI goes up, or doubles?

60%
Higher in 1 year
Modelled chance the price is above today in 12 months
72%
Higher in 5 years
Modelled chance the price is above today in 5 years
27%
Doubles in 5 years
Modelled chance of reaching ₹788 within 5 years

The bull case for LICI

  • LICI's P/E of 8.3x is lower than 90% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • LICI's return on equity of 37.8% ranks in the top 3% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • LICI's return on capital employed of 35.1% ranks in the top 5% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • LICI's dividend yield of 2.5% ranks in the 91st percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • A 10,000-path probability model puts a 60% chance the price is higher in a year, with a median target of ₹421 (+7%).
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹849.

The bear case & risks

  • No model or past record guarantees future returns, treat this as one input, not a decision.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹273.

LICI volatility & expected range, how bumpy is the ride?

Over the last 4.2 years LICI compounded at -3%/year with annualized volatility of 26%. That volatility implies a 1-year 80% range of ₹305-₹583, the honest backbone behind any single price target.

LICI price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 4.2 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
6.9%
80% range₹305-₹583
P(price ↑)60%
P(price 2×)1%
3-Year Forecast
2029
₹0
Median (P50)
22.3%
80% range₹273-₹849
P(price ↑)68%
P(price 2×)13%
5-Year Forecast
2031
₹0
Median (P50)
39.9%
80% range₹263-₹1,156
P(price ↑)72%
P(price 2×)27%

LICI price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
LICI simulated paths · 60 months · 10,000 trials
P10-P90 (80%)P25-P75 (50%)Median (P50)

Probability of key outcomes

What are the odds LICI hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the LICI price target & forecast page.

LICI Piotroski F-Score: 6/8, how financially strong is it?

6/8

The Piotroski F-Score grades financial strength on profitability, leverage and efficiency checks. Downstox scores the eight checks it can verify from published filings, so 8 is full marks. LICI scores 6/8, mixed financial health.

LICI MTF margin & leverage across 10 brokers

Margin Trading Facility lets you buy LICI with part of the capital. Lower margin % = higher leverage. Rates compared across 10 brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox29.41%3.4×
ZerodhaCHEAPEST24.20%4.1×
Groww24.22%4.1×
Dhan36.41%2.7×
Kotak Neo29.41%3.4×
Paytm Money29.45%3.4×
Pocketful27.91%3.6×
Anand Rathi29.41%3.4×
Bajaj Broking37.00%2.7×
Share India27.66%3.6×

Compare every broker on the LICI MTF page.

LICI vs peers,Insurance comparison

StockP/EDiv yieldMarket cap
LICI (this stock)8.3×2.54%₹4.98L Cr
SBILIFE71.6×0.15%₹1.86L Cr
HDFCLIFE59.4×0.39%₹1.17L Cr
ICICIPRULI45.2×0.33%₹72,693 Cr
RELIANCE24.2×0.45%₹18.06L Cr
TCS16.5×2.61%₹8.87L Cr
HDFCBANK14.3×1.78%₹11.26L Cr

Fundamentals from Screener.in, as of 9 Aug 2026

About Life Insurance Corporation of India Ltd.: sector, index & market-cap context

Life Insurance Corporation of India Ltd. (LICI) is a large-cap NSE-listed company in the Insurance sector, and a constituent of the Nifty 500 index, with a market capitalisation of ₹4.98L Cr. See more stocks on our screener.

How the LICI Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Life Insurance Corporation of India Ltd.'s public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

LICI analysis, FAQs

Is Life Insurance Corporation of India Ltd. (LICI) a good buy?

On the numbers, Life Insurance Corporation of India Ltd. (LICI) screens attractive, a Downstox Snapshot Score of 88/100, weighing inexpensive at 8.3× earnings, ROE of 37.8%, a 60% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is LICI overvalued or undervalued?

LICI trades at 8.3× earnings versus a peer median of 24.2×, so it screens cheaper than its Insurance peers.

What is the LICI share price target for 2031?

LICI's probability-weighted 2031 median target is ₹551, with an 80% range of ₹263-₹1,156 (10,000-path Monte-Carlo).

What is the probability LICI doubles in 5 years?

The modelled probability of LICI reaching ₹788 (2×) within 5 years is 27%.

What is the bull case for LICI?

LICI's P/E of 8.3x is lower than 90% of the 2,373 NSE companies in our screener, as of 9 Aug 2026. LICI's return on equity of 37.8% ranks in the top 3% of the 2,373 NSE companies in our screener, as of 9 Aug 2026. LICI's return on capital employed of 35.1% ranks in the top 5% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.

What are the risks in LICI?

No model or past record guarantees future returns, treat this as one input, not a decision.

More on LICI