LIC Shares Surge on Growth Prospects and New Product Plans

LIC Shares Surge on Growth Prospects and New Product Plans

VoM News Desk | November 24, 2023 | 06:02 PM IST | Breaking News | Follow on Google News

LIC Shares Surge on Growth Prospects and New Product Plans

LIC Shares Surge on Growth Prospects and New Product Plans

Life Insurance Corporation (LIC) of India, the country’s largest life insurer, witnessed a significant intraday surge of 9.7% on Friday, reaching a 10-week high and recording its largest intraday gain since its listing in May 2022. The shares hit ₹682 apiece during the trade, driven by optimistic growth targets and new product plans.

Key Highlights and Developments

1. Growth Projection: LIC is targeting double-digit growth in new business premiums for FY24, buoyed by a recent uptrend in individual retail business.
2. New Product Launch: According to LIC Chairman Siddhartha Mohanty, the company plans to launch new products offering assured returns and lifetime benefits post-maturity. These products are expected to disrupt the market with their clarity on payments and returns.
3. Additional Features: The upcoming products will also include loan facilities and options for premature withdrawal.
4. Market Leadership: LIC continues to dominate the life insurance sector in India, holding a market share of 58.50% based on first-year premium income, as per IRDAI.
5. Financial Performance: The company’s new business premium for H1FY24 increased by 2.65% year-on-year, and its AUM rose by 10.47% compared to the previous year.
6. Stock Performance Since IPO: Despite the recent surge, LIC’s stock is trading 29% lower than its IPO price of ₹949.

Analysts’ Views and Outlook

• Positive Momentum: Analysts anticipate the stock’s upward momentum to continue, with potential targets around ₹800 in the near term.
• Buying Opportunity: Any marginal dip towards ₹660 is being viewed as a buying opportunity by market experts.

Market Response and Investor Sentiment

LIC’s shares have responded positively to the company’s strategic initiatives and growth projections. Investors are showing renewed interest, encouraged by the company’s commitment to product innovation and consistent market leadership. The recent developments and future plans outlined by the company’s chairman have instilled confidence in its potential for sustained growth and profitability.

The market will closely watch LIC’s performance in the coming months, especially in light of its new product launches and efforts to achieve the targeted growth in new business premiums.

VoM News Desk

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