Curated By: Business Desk
Last Updated: August 18, 2023, 20:20 IST
Market experts have predicted green pastures for those who would invest in the shares of the country’s largest insurance company, Life Insurance Corporation of India (LIC). Investing in shares of LIC can give one better returns than FD in the coming days, according to experts. LIC had an unexpectedly great June quarter and it published its quarterly financial results on August 10. Since then, it has rallied over two per cent in the two trading days.
Market pundits expect that LIC’s stock can jump more than 40 per cent from its current level in the next 3-6 months. On Thursday, August 17, LIC’s share was at Rs 659.05 on the NSE at 1:40 pm with a jump of about one and a half per cent. The state-run life insurer’s shares debuted in the primary market on May 17 last year at a discount of eight per cent.
However, it could never touch its issue price of Rs 949. On the day of listing, it had reached an intra-day high of Rs 920 and this is its record high. It is currently down 29 per cent from this high. On March 29 this year, it was at a one-year low of Rs 530.20. It is now trading 24 per cent above its 52-week low.
Brokerage firm LKP predicts that LIC would be able to maintain its dominant position in the sector and that its net premium in the current financial year 2023-24 may reach close to Rs 5 lakh crore. The brokerage anticipates stronger activity and higher profitability in August and September. LKP anticipates a boom in the LIC market. Investors could add it to their portfolio between Rs 655 to Rs 670, according to LKP. A target price of Rs. 770–840 has been set by the brokerage and can be attained in the following three to six months.
(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you want to invest in any of these, consult a certified investment advisor. News18 is not responsible for any profit or loss you incur)