India’s life insurance industry is robust and growing, with 24 life insurers catering to a population of over 1.4 billion. The sector has seen substantial growth, achieving a penetration rate of 3.2% in 2023, reflecting increasing awareness and demand for life insurance products among Indian consumers.
With a market capitalization of Rs 6.42 lakh crore, the shares of Life Insurance Corporation of India were trading at Rs 1,015.95 per share, decreasing around 0.53 percent as compared to the previous closing of Rs 1,021.40 apiece.
JP Morgan, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 1,340 apiece, indicating a potential upside of 32 percent from Wednesday’s price of Rs 1,015.95 per share.
According to JP Morgan, LIC performed well in Q4, with exceptional profitability and a New Business Value (NBV) that exceeded expectations. Furthermore, JP Morgan stated that “the stock appears undervalued, with ample room for robust business growth.”
Moreover, the global investment bank praises LIC’s strategic emphasis on expansion above profitability, with market analysts citing the company’s growing market share as a key driver of its stock performance.
Meanwhile, India’s leading life insurer disclosed the results of Q4, revenue increased by 11 percent on a quarter-on-quarter basis from Rs. 214,054 crore in Q3FY24 to Rs. 238,968 crore in Q4FY24. Further, revenue increased by 19 percent year on year, from Rs. 201,231 crore in Q4FY23 to Rs. 238,968 crore in Q4FY24.
Life Insurance Corporation of India Ltd’s net profit increased by 4.5 percent on a quarter-on-quarter basis, from Rs. 9,434 crore in Q3FY24 to Rs. 13,784 crore in Q4FY24. Further, net profit increased by 46 percent year on year from Rs. 13,189 crore in Q4FY23 to Rs.13,784 crore in Q4FY24.
Life Insurance Corporation of India is an India-based insurance company. The Company is engaged in the business of life insurance in and outside India. It offers a range of individual and group insurance solutions including participating, non-participating and unit linked lines of businesses.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
