Can LIC stock surge to over Rs 950 per share?

Shares of government owned Life Insurance Corporation of India, NSE: LICI, can deliver a return of Rs 200 per shares. Zee Business experts Kunal Saraogi and Rakesh Bansal have recommended buying the shares of the insurance behemoth with a long-term view. 

Saraogi said the overall structure of LIC is strong. He said that one can buy the shares of LIC for mid and long-term investments. "I would suggest accumulating the stock when the market is down," he said. Rakesh Bansal said that one can buy LIC shares for a price target of Rs 950.

LIC was listed on the bourses on May 17, 2022 at Rs 872 a share. The government had fixed the issue price of LIC shares at Rs 949 apiece after a successful Initial Public Offering (IPO) which was over-subscribed nearly 3 times. The government had garnered about Rs 20,500 crore through sale of 3.5 per cent stake in LIC via IPO.

LIC shares quoted Rs 709 apiece on NSE during afternoon deals, up 1 per cent on NSE. 

LIC despite ceding share to private players, has retained 37 per cent market share in individual annual premium equivalent (APE) in FY22. Its enormous agency franchise remains the cornerstone of its success, driving 96 per cent of individual new business premium (NBP) in the fiscal.

LIC shares have yielded a negative of around 16 per cent in the past one year. The stock has, however, gained nearly 13 per cent in the past one month. The stock's 52-week range is Rs 918.95 - Rs 588.

Also Read | Sanjiv Bhasin strategy, stocks today: Buy Concor, ICICI Pru and Nestle shares - check price targets

Also Read | Vande Bharat Express train: Three more Vande Bharat trains for south India ANNOUNCED