LIC Stocks Nears 52-week Low, Should You Buy The Stock Now?

The shares of India's largest life insurance player, LIC is near a 52-week low. The shares were last trading at Rs 584.70, as against the 52-week low price of Rs 582.35. Here is what broking firm, Geojit believes.

Buy the LIC stock with a price target of Rs 765, says Geojit

According to Geojit, the Company is focused on building a consistent and profitable portfolio mix, especially inclined towards non-par business. Market share for first-year premium increased 3.98% YoY for 9MFY23. "The management is confident of LIC's business remaining robust and plans to expand its market share. We reiterate our BUY rating on the stock with a lowered, rolled forward target price of Rs. 765, based on 0.7x FY25E EV per share," Geojit has said in its report.

According to the brokerage, over the years, LIC has maintained customer trust through quality deliveries. "It evidently improved its total APE product mix by 48.8% in 9MFY23. The management has emphasized on increasing non-par share in the portfolio mix, driving efficiency through digitalisation, and enhancing yields on investment portfolio for future growth. Owing to LIC's unique positioning on the back of lower average ticket sizes and product category sales weightage, the impact from recently announced budget tax treatments on certain life maturity claims would be minimal. We remain optimistic of LIC's longterm performance and reiterate our BUY rating on the stock, but with a lowered, rolled forward target price of Rs. 765, based on 0.7x FY25E EV per share," the brokerage has said.

Increasing digital penetration and AUM LIC witnessed a strong 118.5% growth in 9MFY23 from FY22 led by rising digital collection. In 9MFY23, app users and portal registered users increased 3.5% and 7.3%, respectively, over FY22. AUM grew 10.5% YoY to Rs. 44 lakh cr (Rs. 40 lakh cr in 9MFY22). New policies increased 1.92% in 9MFY23 to Rs 1.28 lakh crores.

Disclaimer

The article is for information purposes only. Greynium Information Technologies and the Author 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.