Amidst a bearish market trend on Wednesday, LIC (Life Insurance Corporation of India) shares witnessed a significant surge. Investor confidence in the country's largest insurance company appeared to rise following its impressive quarterly results. On the BSE, LIC's share price climbed nearly 9%, reaching ₹948. By 12 pm, it had recorded a 6.97% increase, trading at ₹931.75.
LIC's Results Surprise the Market
LIC reported a net profit of ₹19,039 crore for the fourth quarter of fiscal year 2024-25, a 38% increase compared to the previous year. Compared to the previous quarter, the company's profit increased by 73%, up from ₹11,009 crore in the December quarter. For the entire fiscal year, the company demonstrated b performance with an 18% growth.
Other financial figures for LIC also remained robust. Improvements were seen in the company's assets and solvency ratio. LIC also announced a final dividend of ₹12 per share, further boosting investor enthusiasm. While its net premium income decreased by 3.2% to ₹1,47,917 crore, this still represented a 38% increase compared to the previous quarter.
Brokerage Firm Opinions – Where Could LIC's Share Price Go?
Following LIC's b performance, several brokerage firms updated their target prices.
- Motilal Oswal recommends buying LIC shares with a target price of ₹1,050.
- Antique Broking also advises buying, with a target price of ₹990.
- Kotak Institutional Equities raised its target price for LIC shares to ₹1,260.
Brokerages believe that LIC's profitability is steadily improving, and its FY25 financial performance indicates positive future prospects.
