Stock market today: Shares of Life Insurance Corporation (LIC) of India or LIC shares have been in uptrend after hitting fresh life-time low of ₹566 per share on 27th February 2023 on NSE. LIC share price today opened upside and made intraday high of ₹605.45 levels on NSE within few minutes of stock market’s opening today. After climbing to this intraday high, LIC shares logged around 7 per cent rise in last three straight sessions.
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According to stock market experts, LIC has launched six new non-ULIP products in last nine months and its banca channel has grown 48 per cent YoY. They expected improvement in agent productivity and give ‘buy’ tag to LIC shares for long term expecting it to hit ₹770 apiece levels. They said that LIC share price chart suggests further upside and the stock has support placed at ₹584 apiece levels.
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Speaking on the fundamentals that may fuel LIC share price rally in long term, Yes Securities says, “The ULIP product line, which is low-margin, has risen faster than other Non-Par products. Management states that LIC’s market share in ULIP is small and there is more headroom for this product line to grow. However, its impact on margin will be offset by Non-Par Savings (Non-ULIP) and Annuities. It may be noted that there have been 6 new product launches in 9M, all in the Non-ULIP Non-Par segment, barring one. On repricing, Annuity prices had been revised in August, which also impacted margin negatively. The repricing on Annuity products was done to make the product more competitive and growth will more than offset the negative impact on margin.”
“The banca (including alternate) channel has grown 48% YoY and has contributed 3.50% to individual NBP in 9MFY23 compared with 2.56% in 9MFY22. On the other hand, the agency channel has grown 7.6% YoY. Agent count has been flattish over 9M since there have been agent dropouts along with recruitment,” Yes Securities added.
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Expected more rally in LIC shares, Anuj Gupta, Vice President — Research at IIFL Securities said, “LIC shares are looking positive on chart pattern. It has immediate support placed at ₹584 apiece levels. Those who have this stock in their portfolio are advised to hold the stock with stop loss at ₹584 whereas fresh investors can buy the stock at current market price maintaining stop loss at ₹584 per share levels. In short term, LIC share price may go up to ₹640 apiece levels.”
However, Yes Securities advised positional investors to buy and hold the stock for long term target of ₹770 levels, around 25 per cent higher from its current market price of ₹605 apiece.
