Rs 4/Share Dividend: Large Cap PSU Falls 25.15% From 52-Week High, 4 Analysts Set Buy/Add Call

LIC shares declined 10.81% in last 1-week and soared 52% in last 1-year. The PSU has a market capitalisation of Rs 5,56,283.55 crore. On NSE, LIC share declined 2.71% to Rs 879.85 apiece. Life Insurance Corporation shares declined 25.15% from the 52-week high price of Rs 1175.00 apiece.

LIC was listed in May 2022. Government sold more than 22.13 crore share or 3.5% stake in LIC via an Initial Public Offering (IPO). Government held 96.5% stake in LIC. LIC emerged as 8th most valued domestic company in terms of market valuation. Check details below:

Brokerages Recommend Buy/Add: Brokerage firm Motilal Oswal has assigned buy call to Life Insurance Corporation shares with target price of Rs 1270 per share. The analyst feels LIC has levers in place to maintain its industry-leading position and boost growth in the vastly profitable product segments, especially protection, non-participating product (non-par), and savings annuity. “However, changing gears for such a vast organisation requires a superior and well-thought-out execution plan,” added Oswal.

Emkay Global also assigned add call with target price of Rs 1200 apiece saying, “after the stellar run-up in the stock price post their upgrade, the brokerage has taken a breather and moved LIC stock to ‘add’ rating from ‘buy’ earlier with a revised December 2024 target price of Rs 1,200 per share (from Rs 975 earlier), implying December 2025 P/EV of 0.9 times.”

Kotak Institutional Equities also upgraded the target price for LIC stock to Rs 1,300 from Rs 1,040 apiece. JPMorgan has upgraded LIC stock to ‘overweight’ from ‘neutral’ with a target price of Rs 1,340.

LIC Shares Performance: The 52-week high price of LIC share on BSE is Rs 1175.00 apiece and 52-week low price is Rs 530.20 apiece, respectively. LIC shares tanked 16% in last 1-month, soared 11% in last 3-months, and gained 33% in last 6-months.

Life Insurance Corporation of India Financials: LIC on February 12, 2024 announced its results for the quarter ended December 2023 wherein it declared a surge of 49% in its standalone net profit to Rs 9,444 crore from Rs 6334 crore announced in the corresponding quarter of last year. Its net premium income for Q3 rose 5% year-on-year (YoY) to Rs 1.17 lakh crore as against Rs 1.11 lakh crore declared in the same quarter of last year.

LIC Dividend: The state-owned company also declared an interim dividend of Rs 4 per share or 40% of the face value of Rs 10 each. Board of Directors of LIC set February 21, 2024 as the record date for payment of the interim dividend. “The said interim dividend will be paid within 30 days from the date of declaration,” the company said.

LIC Dividend Yield & History: Life Insurance Corporation of India announced 3 dividends since August 25, 2022. In the last 12 months, LIC announced an equity dividend amounting to Rs 7.00 per share. At the current share price of Rs 879.50 per share, Life Insurance Corporation of India’s dividend yield is 0.80%, as per Trendlyne.

LIC Technical: LIC has a score of 53.31, implying it is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. Its RSI is 33.8, RSI below 30 is considered oversold and above 70 overbought. MFI is 27.8, MFI above 70 is considered overbought. This implies that stock may show pullback. Promoters holding stays unchanged at 96.50% in Dec 2023 quarter. Number of FII/FPI investors decreased from 117 to 107 in Dec 2023 quarter. Mutual Funds have increased holdings from 0.59% to 0.79% in Dec 2023 quarter.

LIC About: The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal, JP Morgan, Emkay Global, Kotak Institutional. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.