LIC share price rises ahead of Q4 results, up 9% in 1 month; should you buy? See what analysts say

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LIC share price jumped nearly 2% on Wednesday ahead of the company's Q4FY23 result. LIC shares were trading at Rs 600, up 1.75% on NSE

LIC share price today

LIC share price has jumped over 4% in the last 5 sessions. The stock has rallied nearly 10% in the last month. In year-to-date time, LIC shares are down 15.41%

LIC share price history

One of the reasons behind the positive movement in LIC stock is the recovery in Adani Group stocks. The market value of LIC's holding in Adani Group companies has seen significant appreciation in less than 2 months

LIC holding in Adani Group

LIC is a leading institutional investor in Adani Group, and it saw the market value of its holdings increase by over Rs 6,200 crore since April to Rs 45,481 crore, thanks to the stellar rally in Adani Enterprises shares, and other Adani Group stocks

Value of LIC investment
in Adani stocks hits
Rs 45,000 cr

LIC is a leading institutional investor in Adani Group, and it saw the market value of its holdings increase by over Rs 6,200 crore since April to Rs 45,481 crore, thanks to the stellar rally in Adani Enterprises shares, and other Adani Group stocks

Value of LIC investment
in Adani stocks hits
Rs 45,000 cr

In terms of technicals, the relative strength index (RSI) of LIC stands at 73.4, signalling that the stock is overbought. Its one year beta is 0.8, implying low volatility in share price

LIC stock technicals

LIC stock is trading higher than the 5-day, 10-day, 20-day, 30-day and 50-day and 100-day moving averages but lower than 200-day moving average

LIC stock analysis

Earlier this month, LIC completed one year of stock listing. LIC shares listed with an 8% discount at Rs 865 on May 17, 2022. One year has passed since the disappointing listing, but LIC share price is still down 30% from the listing price and over 35% down from the upper band of the IPO

LIC IPO listing

LIC’s poor showing after the listing has seen small investors lose interest, with its retail investor count dropping by nearly 700,000 in just five quarters. At the IPO price, LIC was valued at Rs 6 lakh crore. On May 24, 2023 at 12 pm, its market value stood at Rs 3.8 lakh crore

LIC m-cap drops nearly 50%

"We had BUY recommendation during the IPO Subscription and after that, we have a standalone recommendation to Buy with a long term time horizon and we believe there is a huge market as far as 'Insuring the Uninsured' is concerned. This will not only create opportunities for LIC but also for the other related entities like HDFC Life, ICICI Prudential and SBI Life," said Gaurang Shah, Senior Vice President at Geojit Financial Services earlier on LIC's 1 year of listing

Should you buy LIC shares?

Gaurang Shah of Geojit Financial Services believes that there might be a slight deceleration in growth due to the concerns outlined in the Union Budget by the Finance Minister. However, considering the long-term perspective, LIC remains a sound investment

LIC sound investment from
long-term perspective

LIC is underperforming but investors should not write off this stock just yet as it is a solid player. At some point of time, once LIC starts getting some of the more profitable products going and scaling up, investors may see exceptional numbers coming through from LIC, according to Dipan Mehta, Director at Elixir Equities

Investors may see
exceptional numbers
through LIC

Kotak Institutional Equities has a 'Buy' call on LIC stock, pegging the life insurer's stock at Rs 975 over the next 12 months. JM Financial also has a buy call on the stock with a target price of Rs 940

What should investors do?

Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position

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