Now Reading: LIC shares climb 1.66% after Q1 profit jumps 23%
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LIC shares climb 1.66% after Q1 profit jumps 23%
LIC shares closed 1.66% higher at ₹394 on the NSE on Friday, a day after the state-owned insurer reported a 23% rise in June-quarter net profit to ₹13,492 crore. Net premium income…
The Story in Brief
LIC shares closed 1.66% higher at ₹394 on the NSE on Friday, a day after the state-owned insurer reported a 23% rise in June-quarter net profit to ₹13,492 crore. Net premium income rose 7% to ₹1.27 trillion. Analysts upgraded targets after the company posted a record 22.9% Value of New Business margin, beating estimates by about 30% according to Jefferies.
Brokerages including Motilal Oswal, JM Financial, Macquarie and Bernstein raised their price targets to between ₹480 and ₹550, citing improved product mix and the removal of overhang from a recent government stake sale. Total assets under management stood at ₹59.4 trillion.
The Indian Opinion
The optimism around LIC's VNB margin beat and OFS clearance is understandable, but the stock is still down nearly 11% over the past year. Investors should be wary of reading too much into a single quarter's margin jump, as product mix shifts and assumption changes may not recur. The real test is whether LIC can grow its individual APE sustainably and maintain margins as private players ramp up. Will the margin gap continue to shrink, or will competitive pressures erode this quarter's gains?
Sources (2): ndtvprofit.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
