LIC share price at all-time low since listing; down 32% from issue price - brokerages bullish, check price target

LIC share price: Life Insurance Corporation of India (LIC) share price on Thursday touched an all-time low of Rs 648 per share on the NSE and BSE. The stock price declined over 1 per cent intraday to trade at fresh low. 

The state-owned company’s share price has slumped around 32 per cent from its issue price of Rs 949 per share and has been trading at the lowest level since its market debut on May 17, 2022.  

The insurance company has been a continuous underperformer since its market debut. It dropped around 4 per cent in the last one month, as compared to a 0.7 per cent rise in the Sensex. It declined almost 26 per cent in the last six months, as against around a 2 per cent rise in the benchmark index. 

According to Geojit Financial, LIC saw a recovery in its market share in the quarter gone by and will continue to maintain its dominant position in the life insurance domain for a very long time. “Strong goodwill among the public, government backing, and the robust investment portfolio remain favourable factors and ensure the company will continue to perform well in the long term.”  

Though a marginal slowdown in the new business margin growth is expected in the near term, the company’s focus on increasing the contribution from high VNB margin products bodes well for its long-term performance, the domestic brokerage said in its report. 

With an optimistic outlook, Geojit assigns a BUY rating on the stock with a target price of Rs. 810, based on 0.8x FY24E EV per share. 

LIC, the market leader in India’s life insurance, space is shifting focus to profitable segments (NPAR/protection products), a higher share of an individual business, and omni-channel distribution (banca/digital partnerships), Axis Capital said in its report. 

The brokerage initiated coverage on LIC with a BUY rating and target price of Rs 900 (0.9x FY24 implied P/EV) – a significant discount to listed private peers.