Life Insurance Corporation of India share price gained more than 2% in morning trades on Wednesday helping its market cap cross the ₹5.8 Lakh Crore mark as it touched 52 week highs of ₹919.45 a piece. LIC market cap thereby surpassed market cap State Bank Of India (SBI) . SBI share price was down 1% on the BSE while its market cap stood at around ₹5.62 Lakh Crore .
The LIC share price have been on a significant uptrend since start of November, having gained more than 50%.
Post-listing, the share price of LIC, experienced significant downward pressure until March 2023, reaching an all-time low of ₹530. However, a notable turnaround occurred in the subsequent months, with a particularly robust upward momentum observed in November, marking a gain of 12.83%.
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This positive trend however caught further pace into the following month, with an impressive gains of 22.66% in the month of December. In the current month, and ever since start of 2024, the stock has shown a further strong move as it has gained more than 10% so far. At current levels, the stock is just around 4% away from its IPO price.
LIC had remained amongst the conviction picks of many analysts. Centrum Broking at the start of January has said that LIC is trading at a discount to its Embedded Value which offers significant value comfort. As seen from Q1 results, LIC still is a dominant player and despite its huge size, their market share is still increasing. The regulatory changes done with respect to the PAR and Non PAR business is likely to significantly increase LIC’s profitability in the long run.
PAR is a participating life insurance plan, that helps the life assured to participate in the life insurance company’s profits.
Analysts have been of the view that the non-par segment is value-adding, and an increase in its share can enhance LIC’s overall margins.
As far s first half FY24 financial performance is concerned LIC had reported a net profit of ₹17,469 crore in H1FY24 as compared to a net profit of ₹16,635 crore in the same period a year ago.
Its new business premium (individual) for H1FY24 jumped 2.65% to ₹25,184 crore from ₹24,535 in H1FY23. New business premium is the premium due in the first policy year of a life insurance contract.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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Published: 17 Jan 2024, 10:41 AM IST