LIC Share Price Target
LIC Share Price Target 2023, 2024, 2025, 2026, 2030, 2040 | LIC share price is 20% down from listed price? what You Need to Know for Future investments in India’s largest insurance company. Dive deep into LIC stock performance, factors affecting LIC share price and more.
LIC Share Price Target 2023, 2024, 2025, 2026, 2030, 2040
Business Overview of LIC (Life Insurance Corporation of India):
LIC (Life Insurance Corporation of India) is India’s largest life insurance company and fifth most valuable company of the country with market capitalization of about $41.68 Billion. It also stands as world’s 399th most valuable company according to studies by research.
Even after listing at a discount of 9% of against the IPO price, it became the fifth largest listed firm by market capitalization of Rs. 5.70 Lakhs crores.
LIC is a state owned enterprise that provides life insurance, pension plans, and investment opportunities to its policyholders with its vast network of agents and branches throughout India, making it easily accessible to people in both urban and rural areas.
LIC also has branches out of the country that are in Fiji, Mauritius and the United Kingdom, with subsidiaries in Bahrain, Bangladesh, Nepal, Singapore and Sri Lanka.
It has major importance in growth of the Indian economy as it encourage and channelize the saving into long term investments and infrastructure development. Company is running with its vision to provide affordable life insurance and financial protection to every individual in India.
LIC hold the market share of around 60% to 62% in terms of new premiums in the FY 2022-23 that of its biggest rivals SBI life insurance have around 7%. According to Jefferies, LIC’s new premium market share has declined from 69% to 61% since 2015, while its retail annualized premium equivalent (APE) market share has sunk from 51% to 38% in the same period.
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Overview LIC stock performance in past:
Shares of Life Insurance Corporation (LIC) have been on a downward trend since their listing on stock market. Currently, the stock is down over 20% as against its issue price of Rs 949 to Rs. 902.
Due to tightening of monetary policies the sentiments about the LIC share price 2022 gone negative and affected the share to fall 7% down to Rs.811 after the first month of listing. And this downfall continued further, after the US federal’s hike in interest rates by 75 BPS (highest increase in interest rates over past 30 years).
These incidences caused to LIC share price to fall around 22% after 5 months of its listing and to close near Rs. 673. Nearly in July month it saw some uptrend and gained around 5%, but due to negative sentiments in global market it could not hold this moment for long and as of the year end, so LIC share price 2023 till March end settled at all-time low Rs. 532 nearly 41% down to its listing price.
LIC shares have been marred by volatility since they debuted on the exchanges. The downtrend in earnings reported by the insurer last month did not help. Many analysts are sceptical about LIC’s ability to transform itself in the modern world as the management has projected.
LIC Current Financial Standings:
For the previous quarter ended 31st December 2022, the LIC has reported a consolidated total income of Rs 197,984.89 Crore, which is down 11.51 % from last quarter total Income of Rs 223,736.35 Crore and up 12.89 % from last year same quarter total income of Rs 175,381.38 Crore.
Net profit margin is increased from 0.12 % of last year same quarter to 4.22% of the latest quarter end December 2022. EBITDA margin also gone up from 0.07% of the last year same quarter to 6.93% of quarter ended 31st December 2022.
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LIC’s Corporate Action:
LIC Share Divided History – For the year ending March 2022 Life Insurance Corporation of India has declared an equity dividend of 15.00% amounting to Rs 1.5 per share. At the current share price of LIC – Rs 531.85 this results in a dividend yield of 0.28%.
LIC Share Bonus History – The Company has not offered any bonus to shareholders till now.
LIC share price projections:
Based on the historical data and company’s business overview, in this section now we will provide our readers the LIC share price forecast with helpful insights into the future performance of LIC stock.
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LIC share price target 2023, 2024, 2025, 2026, 2030, 2040:
Year | First target | Second target |
LIC share price target 2023 | 730 | 760 |
LIC share price target 2024 | 825 | 860 |
LIC share price target 2025 | 1200 | 1265 |
LIC share price target 2026 | 1470 | 1505 |
LIC share price target 2030 | 2200 | 2260 |
LIC share price target 2040 | 6400 | 6600 |
LIC Share Price Target 2025
Being the government owned company people trust and prefer LIC over any other private players in insurance sector. LIC’s main strength for business growth is its reach all over the country through its distribution network, presence of branches in urban as well as rural areas. So LIC Share Price Target 2025 will be in the range of Rs.1200 to Rs.1265
What will be LIC share price target 2030 ?
India is the biggest market for insurance sector, it indicates that it’s under penetrated market and has immense growth potential. And over the years LIC has introduced new innovative mix of products, insurance plans to fulfill the people’s requirement as per current market trend. So based on study LIC will reach Rs.2200 to Rs.2260 by year 2030.
What Will be LIC Share Price Target 2040 ?
Considering the current human mentality of persons all over the world, the Global Insurance Outlook 2020 has studied that the Insurance companies all over the world, in order to stay relevant, must adapt the new technologies and big data to develop new and innovative business models, new value propositions, and new mix of products which can offers necessary to re-ignite growth through distribution, product development, and service strategies.
Based on our study of the business of LIC and historical data, LIC Share Price Target 2040 will be, first target is Rs.6400 and second target is Rs.660
Risk and challenges:
As LIC is government owned company, its organizational culture is very loose and relaxed, despite of it is in one of high competitive market players around the world trying to overtake them aggressively. Peoples are now more attracted towards the quick and smart services and private players are taking advantage of this factors.
The changes in government policies and regulations will mostly change once any government changes. So because financial and monetary policies vary with each new government, tactics must be altered correspondingly. This results in a slew of issues.
People’s love towards the new technologies, most financial service providers’ use online banking and financial brokerage services to make technology an intrinsic element of their business. The LIC, on the other hand, still has a lot of catching up to do in terms of technology.
Conclusion:
According to the study we can conclude that company has LIC has also been actively investing in infrastructure development projects in India, which is expected to fuel economic growth in the country.
The Indian government has been promoting infrastructure development through various initiatives such as the National Infrastructure Pipeline (NIP) and Atmanirbhar Bharat Abhiyan, and LIC’s investments in this sector are likely to benefit from these initiatives.
In addition, LIC’s strong financial position and large customer base provide a solid foundation for its growth. The company has consistently reported strong financial performance, with high levels of profitability, solvency, and asset quality.
Its large customer base, which includes both retail and institutional customers, provides a stable source of revenue and a diversified business mix.
Overall, LIC’s growth prospects appear promising, driven by its strong brand equity, extensive distribution network, investments in infrastructure, digital transformation initiatives, and solid financial position.
However, as with any investment, there are risks involved, and investors should carefully consider their investment objectives and risk tolerance before investing in LIC.
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