Shares of Life Insurance Corporation of India Ltd. (LIC), India's largest insurance company, will be reacting to their quarterly results on Wednesday, May 28. The results were reported after market hours on Tuesday.
LIC shares are trading below their IPO price currently, but nearly three-quarters of the 21 analysts remain bullish on the stock's prospects, calling it a value proposition.
LIC's new business premium, Annual Premium Equivalent, Value of New Business, were all better than the CNBC-TV18 poll, while margins were in-line with expectations. All of these parameters though, were lower, when compared to the same quarter last year.
Brokerage firm Macquarie has an "outperform" rating on LIC with a price target of ₹1,215, which implies a potential upside of up to 40% from Tuesday's closing levels.
The brokerage said that the increasing non-par mix and a decline in cost ratios will provide margins support, adding that the current valuations will support any downside risk to LIC's VNB estimates.
LIC is currently trading at 0.7 times financial year 2025 trailing Enterprise Value, and Macquarie calls the stock a "value proposition."
Goldman Sachs has a "neutral" rating on LIC with a price target of ₹880, which are levels similar to which LIC's shares closed on Tuesday.
LIC's management expects margins to improve in the medium-term as the focus continues on non-par products.
Motilal Oswal has a 'buy" recommendation on LIC with a price target of ₹1,050, which implies a 21% potential upside from current levels.
The company is expecting premium growth to recover soon, although the reduction in the number of policies issued may take longer to stabilise, according to Motilal Oswal.
Based on its financial year 2025 performance, Motilal Oswal has trimmed its VNB Margin estimates for LIC by 50 basis points for financial year 2026 and 2027 each.
Out of the 21 analysts that have coverage on LIC, 16 of them continue to have a "buy" rating on the stock, four say "hold", while one has a "sell" recommendation.
Shares of LIC ended 0.3% higher on Tuesday at ₹870. The stock has remained flat so far this year.
LIC shares are trading below their IPO price currently, but nearly three-quarters of the 21 analysts remain bullish on the stock's prospects, calling it a value proposition.
LIC's new business premium, Annual Premium Equivalent, Value of New Business, were all better than the CNBC-TV18 poll, while margins were in-line with expectations. All of these parameters though, were lower, when compared to the same quarter last year.
Brokerage firm Macquarie has an "outperform" rating on LIC with a price target of ₹1,215, which implies a potential upside of up to 40% from Tuesday's closing levels.
The brokerage said that the increasing non-par mix and a decline in cost ratios will provide margins support, adding that the current valuations will support any downside risk to LIC's VNB estimates.
LIC is currently trading at 0.7 times financial year 2025 trailing Enterprise Value, and Macquarie calls the stock a "value proposition."
Goldman Sachs has a "neutral" rating on LIC with a price target of ₹880, which are levels similar to which LIC's shares closed on Tuesday.
LIC's management expects margins to improve in the medium-term as the focus continues on non-par products.
Motilal Oswal has a 'buy" recommendation on LIC with a price target of ₹1,050, which implies a 21% potential upside from current levels.
The company is expecting premium growth to recover soon, although the reduction in the number of policies issued may take longer to stabilise, according to Motilal Oswal.
Based on its financial year 2025 performance, Motilal Oswal has trimmed its VNB Margin estimates for LIC by 50 basis points for financial year 2026 and 2027 each.
Out of the 21 analysts that have coverage on LIC, 16 of them continue to have a "buy" rating on the stock, four say "hold", while one has a "sell" recommendation.
Shares of LIC ended 0.3% higher on Tuesday at ₹870. The stock has remained flat so far this year.
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