Life Insurance Corporation of India Ltd (LIC) witnessed a remarkable 6% surge in its stock value on Monday, outpacing Infosys and briefly surpassing ICICI Bank in the market capitalization race.
The insurance giant’s shares reached a high of Rs 1,150 on BSE, commanding a market cap of Rs 7,10,803.24 crore, making it the fourth most-valued stock on Dalal Street. This positive momentum followed better-than-expected quarterly results, prompting several brokerages to revise their target prices on LIC.
Religare Broking highlighted LIC’s robust performance, citing growth in policies and improved margins. The company strategically increased the share of non-par products, contributing to enhanced profitability. Religare Broking revised its rating to “Accumulate” with a target price of Rs 1,232, valuing the company at 1x of its FY26E embedded value.
YES Securities set a target of Rs 1,250, incorporating a reduced haircut on unrealized equity investments. The valuation now considers core EV, 6 times VNB, and 75% of unrealized gains on the equity book. While recognizing LIC’s sensitivity to capital market movements, YES Securities acknowledged the potential impact on EV and fair value in case of a market correction.
Kotak, in its analysis, increased the target on LIC to Rs 1,300, emphasizing a 50% reduction in the haircut on unrealized equity investments. The revised valuation comprises core EV, 6 times VNB, and 75% of unrealized gains on the equity book. Kotak cautioned that LIC’s value remains subject to market fluctuations, indicating a downside risk in the event of a correction.
Antique Stock Broking raised its FY24–26 VNB estimates by 13–14%, leading to a target price revision for LIC to Rs 1,080 from Rs 780. This adjustment implies 0.8 times FY26E P/EV, reflecting the brokerage’s positive outlook on LIC’s future performance.