Last Updated: May 26, 2023, 12:20 PM
Life Insurance Corporation of India (LIC) Share Price: The shares of LIC on Friday morning have been buying and selling increased publish the insurance coverage behemoth’s sturdy efficiency within the March quarter earnings earlier this week. The scrip has been performing effectively previously month and has given over 10 per cent returns to its buyers.
However, the yr to this point has been unhealthy for the inventory as it’s down about 12 p.c year-to-date. The inventory hit its 52-week excessive of Rs 841 on May 30, 2022, and a 52-week low of Rs 530.20 on March 29, 2023.
LIC Q4 Earnings
The firm on May 24 reported a 447.47 per cent or 5.5 folds year-on-year rise in consolidated Q4 FY23 PAT at Rs 13,190.79 crore. In the earlier fiscal’s Q4, the PAT stood at Rs 2,409.39 crore.
Consolidated internet premium earnings, however, fell 8.27 per cent to Rs 1,32,223.21 crore in Q4FY23 from Rs 1,44,158.84 crore in Q4 of the earlier fiscal.
Besides, LIC’s board of administrators advisable a dividend of Rs 3 per fairness share for FY23.
What Should Investors Do Now?
Analysts discover LIC’s prevailing valuations as undemanding and see as much as 57 per cent upside on the inventory over the prevailing share worth.
JM Financial mentioned the present valuation of LIC at 0.5 instances FY25E EV is undemanding and expects the inventory to rerate on the again of strengths comparable to giant buyer base (27.80 crore in-force particular person insurance policies), large company community (accounted for 51.3 per cent of complete {industry} brokers as of March), sturdy model fairness and, importantly, the sovereign assure (on sum assured and bonuses) connected to LIC insurance policies. Post LIC’s March quarter outcomes, JM Financial has retained its ‘Buy’ score on the inventory with a goal of Rs 940.
LIC, Motilal Oswal Securities mentioned, has the levers in place to keep up the industry-leading place and ramp up development within the extremely worthwhile product segments primarily safety, non-participating, and financial savings annuity.
That mentioned altering gears for such a huge group requires a superior and well-thought out execution, Motilal Oswal mentioned, because it expects LIC to ship a 15 per cent development in annualized premium equal (APE) compounded yearly over FY23-25, thus enabling a 27 p.c VNB (worth of recent enterprise) CAGR.
The brokerage goal of Rs 830 on LIC suggests 37.5 per cent potential upside for the inventory over Thursday’s closing worth of Rs 603.60.
Foreign brokerage Macquarie has a goal of Rs 850 on LIC. Goldman Sachs, in the meantime, has a goal of Rs 690 for the inventory.
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