The suggestion was noted in a research report by Geojit Financial.
LIC is expected to give returns of up to 22 percent on its shares.
Life Insurance Corporation of India Ltd (LIC) is the country’s prominent statutory insurance and investment corporation. It is founded and majorly owned by the Government of India. The company has assets under management (AUM) of over Rs 4,700,000 crore. In addition to that, it has investments in more than 270 listed companies. Recently, shares of LIC gained 10%. This dramatic rise in the share price of LIC has been witnessed after a long time. While the current share price of LIC is Rs 674, the target price has been set at Rs 823. LIC is expected to give returns of up to 22 percent on its shares. The research report by Geojit Financial suggests, “Market leadership, new product launches to support the non-par business strategy, a wide distribution network, and digitalisation bode well for the company’s future growth.”
In Q2FY24, LIC’s gross premium income decreased by 18.7% YoY to Rs 107,947 crore. This happened due to a lower single premium. In H1FY24, the value of the new business (VNB) decreased by 10.1% YoY. However, the VNB margin was 14.6%.
Earlier, shares of public sector insurance company LIC jumped 9.71 percent on the company’s plans to launch 3-4 new products within coming months. The company took the decision to push growth in its new business premium. During an interview with PTI, LIC Chairman Siddhartha Mohanty said, “The state-run insurer was projecting a double-digit growth in the current financial year over the last year. LIC intends to achieve this goal by launching some new attractive products.”
He added, “LIC is going to launch one product in the first week of December, hoping that it will attract a lot of traction in the market.” He went on to add further and noted, “Loan facility and premature withdrawal would also be a feature of the new product.”
Mohanty noted that guaranteed return products are in interest with policyholders and shareholders; adding that many shareholders also hold the position of policyholders which makes it more beneficial for policyholders.
Source: News18