LIC Share Price Target 2023 NSE: Domestic brokerage firm Kotak Institutional Equities has initiated a Buy rating on Life Insurance Corporation of India, NSE: LICI, with a price target of Rs 1,000, implying 40 per cent upside from current level.

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LIC, India’s insurance behemoth, despite ceding share to private players, has retained 37 per cent market share in individual annual premium equivalent (APE) in FY2022, the brokerage firm said in its report. Its enormous agency franchise remains the cornerstone of its success, driving 96 per cent of individual new business premium (NBP) in FY2022.

Moreover, the high productivity of its agency force, coupled with the benefits of scale, drives cost leadership, while listed private peers largely depend on banks to drive their business, the report said. 

The brokerage house reported that the key risks to LIC’s business stem from competition from private players that have a more diversified product mix and sourcing.

Kotak Institutional Equities said that it remains positive about LIC’s ability to steer the product mix to the high-margin, non-par segment from the large share of the participating business (29% of APE in FY2022).

LIC Share Price History 

The LIC scrip on Tuesday was trading at Rs 734 at 3 PM, up by Rs 24 or over 3 per cent from the previous close of Rs 709.50. Its 52-week range is Rs 918.95 - Rs 588.

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.

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