LIC share price jumps over 5% after Q1 net profit swells multi-fold; should you buy?
Life Insurance Corporation of India (LIC) share price rallied more than 5% on Friday after the state-run insurance behemoth reported a multifold jump in its net profit for the quarter ending June 2023. LIC share price gained as much as 5.42% to ₹676.95 apiece on the BSE. LIC posted a profit of ₹9,544 crore in Q1FY24, nearly fourteen-fold surge as against ₹683 crore in the corresponding period of the previous year.
The company’s total income increased to ₹1,88,749 crore for the June quarter as against ₹1,68,881 crore in the year-ago period. Its net income from investments rose to ₹90,309 crore from ₹69,571 crore, YoY. Total Premium Income was reported at ₹98,363 crore as compared to ₹98,352 crore, YoY.
However, total annual premium equivalent (APE) during the quarter fell 7% YoY to ₹9,532 crore. Participating policies' APE also declined 10.2% while non-par APE grew 21%. LIC's group policies fell 6.2%.
Read here: LIC Q1 Results: Profit rises 14-fold to ₹9,544 crore Brokerage firm Motilal Oswal says LIC has the levers in place to maintain its industry-leading position and ramp-up growth in the highly profitable product segments (mainly Protection, Non-PAR, and Savings Annuity). However, it believes changing gears for such a vast organization require a superior and well thought out execution. Motilal Oswal expects LIC to deliver a 15% CAGR in APE over FY23-25, thus enabling a 27% VNB CAGR.
However, it expects operating RoEV to remain modest at 10.9%, given its lower margin profile than private peers and a large EV base. At 10:00 am, LIC share price were trading 3.17% higher at ₹662.45 apiece on the BSE. Catch Live Market Updates here Disclaimer: The views and recommendations made above are those of individual analysts or
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