Life Insurance Corporation of India (LIC) stock opened its trading session today at Rs 546 and currently trades at Rs 538. It has a market capitalization of 3,44,838 crores. The stock marked its 52-week low figures today at a price of Rs 535. The scrip has lost around 7 percent in the past month and has been showing this dip trend since the start of 2023.
Despite all the noise with respect to the negative movements in the stock, the company has a positive outlook and plans to invest huge sums across markets. According to a report, LIC is said to be investing around Rs 2.4 trillion in the forthcoming financial year.
Kotak Institutional Equities came up with a ‘Buy’ recommendation for LIC stock with a target price of Rs 975 which is an upside of around 81 percent to the current price levels.
Life Insurance Corporation of India is an insurance company located in Mumbai, India. Established in 1956, the company is primarily involved in the provision of life insurance products including pension plans, health plans, and group insurance schemes.
Being one of the oldest and largest government-owned life insurance companies, the group continues to be the dominant life insurer even in the liberalized scenario of the Indian insurance sector.
When observing the financials of the company, it can be observed that the revenues and net profits have been hit in the recent quarters with revenues moving from Rs 1.33 lakh crores in Q2 to Rs 1.12 lakh crores in Q3.
Moreover, the net profit numbers reported have moved from Rs 15,312 crores in Q2 to Rs 7,397 crores in Q3. The net profit margins increased marginally on a YoY basis from 0.73 percent in FY20-21 to 0.96 percent in FY21-22.
The profitability ratios have shown mixed movements where on one hand ROE has dropped from 74.46 percent in FY20-21 to 45.16 percent in FY21-22 and on the other hand the ROCE figures have shown a drastic up movement from 2.28 percent in FY20-21 to 45.59 percent in FY21-22.
Written by Amit Madnani
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