Shares of the Life Insurance Corporation of India (LIC) continued their four-session gaining streak on Tuesday as the stock went up over 2% to hit a new intraday high of ₹632.50.
What Happened: Shares of the insurance giant have been upbeat since media reports suggested that the company was scheduling international roadshows later this month. As per reports, the company will hold international roadshows in Hong Kong and in the United Kingdom to create awareness among global investors.
The company’s numbers for the March quarter released last month also impressed investors. The government-controlled company’s consolidated net premium income for the quarter ending in March stood at ₹1.32 lakh crore, marking an 8.4% decrease from the ₹1.44 lakh crore income reported in the same quarter last year. However, the company’s net profits saw a significant increase, reaching ₹13,190.8 crore compared to ₹2,409.4 crore in the previous year.
The numbers also impressed brokerages. Here are the latest analyst calls on the stock.
|Brokerage Firm||Rating||Price Target|
|BoB Capital Markets||Buy||₹775|
|Geojit BNP Paribas||Buy||₹727|
The Investment: If you invest ₹10,000 in LIC today, with the stock trading at around ₹630 levels, you would receive around 16 shares of the company. Now, if LIC pulls off a major turnaround, and goes on to hit its IPO price of ₹949, the value of your 16 shares would surge up to ₹15,184.
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The Risk: It’s important to note that the stock market is unpredictable and volatile. While LIC’s recent performance is promising, there’s no guarantee that the stock will reach its IPO price again. Since the start of the year, shares of the company have slumped close to 11%. The stock also hit its all-time low of ₹532.05 in March this year, down over 40% from its IPO price.
Price Action: LIC's share price was up 1.99% to trade at ₹630.60 in the late hours of trading on Tuesday.
Disclaimer: This article is for educational purposes alone and does not constitute financial advice.
Editor's Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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