LIC stock hit a new high on Thursday morning ahead of the release of its third quarter results for the financial year 2023-24.
LIC shares had a strong start and within a few minutes of trading it reached a record high of Rs 1,100 per share on the National Stock Exchange.
Experts Optimistic About LIC’s Q3 Performance
According to market analysts, LIC is expected to post some stellar third quarter results today due to solid growth in new business premiums.
Siddharth Khemka, head of retail research, estimates that LIC will announce some concrete figures for the third quarter today. He believes the insurance giant’s growth in new business premiums will remain strong, as it has been since its IPO. According to Motilal Oswal Financial Services, this momentum is expected to continue in India as well.
Avinash Gorakshkar, head of research at Profitmart Securities, looked quite positive about it, mentioning how the government is fully committed to supporting PSUs like LIC.
Gorakshkar said, “The market is expecting a strong quarter for LIC, which is also a PSU. The government’s emphasis on strengthening the strengths of PSUs, as highlighted by the Prime Minister recently, has helped LIC. “This has encouraged us. This gives us confidence that companies will like such companies.
What To Expect From LIC’s Q3 Results
Experts believe that LIC’s new business premium growth in the third quarter is going to be quite solid due to some strong sales momentum during the festive season. It looks like the insurance giant will see some double-digit growth in new policy sales.
Additionally, LIC’s huge investible fund is also expected to deliver solid returns in the third quarter due to the rise in bond yields in recent months.
Analysts believe that LIC’s third quarter net profit will see a big improvement compared to last year.
LIC Share Price Outlook
LIC stock has been killing it since hitting the market in May 2022. The shares have gained nearly 34% from the IPO price of Rs 949 per share.
Analysts believe that LIC’s stock is likely to rise in the near future due to positive third quarter results.
Choice Broking boss Sumeet Bagadia believes that LIC shares could actually go higher from where they are now. He suggests maintaining the stock with a stop loss of Rs 1,020, and thinks it could reach Rs 1,150 soon.
Bagadia suggested that investors should consider buying LIC shares at lower prices in the coming weeks, targeting Rs 1,125 and Rs 1,150.
Overall, the blockbuster listing and impressive financial performance has really attracted the attention of investors when it comes to LIC shares. With its strong foothold in India’s insurance industry and government backing, it is definitely a safe bet for value investors in the long run.