on BSE, LIC Shares closed in red However, 810.55 per share is flat as compared to the previous close. Its market cap is 5,12,672.69 crores.
LIC’s intraday floated between highs and lows 817 each and 808.55 each today respectively. The stock is at its 52-week low. got close to 801.55 each.
Due to this, the market cap of LIC fell from the previous sixth position to the seventh position among the top ten most valuable companies on the exchanges. On Dalal Street, ICICI Bank surpassed LIC and secured the sixth position with market capitalization 5,23,353.87 crores.
When LIC was listed on May 17, it was ranked fifth in terms of market capitalization and has since lost its position to Hindustan Unilever and ICICI Bank.
LIC on Tuesday said that it has registered a profit of 42,000 crore from its investments in the stock market for the financial year FY22 – more than the profit of 36,000 crore in FY 2011.
While interacting with the media, LIC Managing Director Raj Kumar said that LIC is the largest asset manager in India with assets close to Rs. 42 trillion under management, in addition to being the largest domestic investor in the local stock market. It invests around 25% of its assets in Indian equities.
Kumar also pointed out that LIC’s Q4 FY22 was not compared with Q4 last year as the insurer started reporting quarterly profits from the September quarter of 2021.
LIC’s management further said that they are conducting an exercise to calculate the Indian embedded valuation, the value of a new business and the margin of the new business, which is expected to be completed by June 30. Before IPO, LIC had an embedded valuation of 5.39 trillion.
“We are implementing a new IT solution for calculating IEV and we need to cross-check all the data to be absolutely sure that the new system is correct, although the last two data (September and December) are not complete. Well matched with our liabilities,” Kumar said.
LIC registers 6.1% growth in net premium income 4,27,419 crore for FY22 as compared to 4,02,844 crore in the last financial year. LIC’s net profit for the whole year was An increase of 39.39% as against 4,043.12 crore 2,900.57 crore in FY21.
Further, in FY 2012, the Company’s Yield on Investment on Policyholders’ Wealth excluding unrealized profits stood at 8.55% as against 8.69% in FY2011. The insurer’s net NPAs to policyholders’ funds declined to 0.04% in FY22 as against 0.05% in the previous fiscal. Also, the solvency ratio for the year ended March 31, 2022 was 1.85 as against 1.76 for the period ended March 31, 2021.
in the upper price band of the IPO 949 each, the market cap of LIC remained 6,00,242 crores. However, since its launch, LIC’s share and market cap have improved rapidly.
As against its IPO upper price band, the shares of LIC have declined by around 15% as on today. While its market cap is over . has fallen from 87,569 crores against the IPO issue price.
Have LIC shares become cheap? How long will the pressure on stocks last?
Manish Jelloka, Co-Head Products & Solutions, Sanctum Wealth, said, “The fall in Q4 net profit, continuation of 13th month and lower than expected dividend payout have scared LIC investors.
“Following further results for the IPO, management has reiterated its focus on increasing the share of the non-par business, improving VNB margins, preventing market share declines and reducing the expense ratio,” Jelloca said. “
Further, Jelloka said, “Given that LIC is such a giant, these changes will be gradual at best and hence there will be multiple reratings. Cheap valuations provide great comfort to LIC investors.”