The Life Insurance Corporation of India (LIC) has experienced a significant increase in its share price, reaching an all-time high just before the scheduled announcement of its third-quarter (Q3) financial results. This increase in share value indicates an optimistic investor sentiment and trust in the company's performance.
The LIC share price opened on a positive note today and quickly reached a new high of ₹1, 100 per share on the NSE. However, the Annual Premium Equivalent (APE) is expected to decrease by 14.3% YoY to Rs 10,561.70 crore, compared to the previous year's Rs 12,317 crore. On the other hand, the Value of New Business (VNB) is estimated to be Rs 1,641.10 crore, which is lower than last year's Rs 1,801 crore, while the VNB margin is expected to expand to 15.5% from 14.6%. Additionally, the Assets Under Management (AUM) is predicted to rise by 11.9% to Rs 49,61,600 crore compared to last year's Rs 44,34,900 crore.
Earlier, on February 5, LIC informed stock exchanges that its board of directors would meet on February 8 to approve unaudited financial results (standalone and consolidated) for the quarter and nine-month period ending December 31, 2023. The board of directors may also consider a proposal for the declaration of interim dividends for the financial year 2023-24 in the said meeting.
The shares of Life Insurance Corporation of India (LIC) have increased by 3% following Prime Minister Narendra Modi's comments on the company's resilience and its performance in the share market.
Siddhartha Khemka, Head - Retail Research at Motilal Oswal, expects strong LIC Q3 results in 2024 and stated that “Insurance giant LIC will announce results on Thursday where new business premium growth is expected to remain healthy." Avinash Gorakshkar, Head of Research at Profitmart Securities, explained that the market is bullish on LIC shares ahead of Q3 results today as the market is expecting better quarterly numbers from the insurance behemoth, which is a PSU too.
The short-term trigger for LIC and other PSU stocks is the strong business and growth outlook expressed by PM Narendra Modi in the upper house of the parliament.
The stock of LIC hit a new high of Rs 1,050.50, which is a 2.52 percent increase. It eventually closed at Rs 1,045, up by 1.98 percent. Recently, LIC has surpassed its 2022 IPO issue price of Rs 949.
The recent surge in the share price of LIC indicates a positive outlook among investors. However, it is crucial to wait for the detailed financial report to comprehend the factors influencing this rise and the overall performance of the company.
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