Life Insurance Corporation of India (LIC) share price fell 3% to Rs 810 apiece on BSE on Tuesday, after the insurance company reported an 18% loss in one year of standalone net profit at Rs 2371.55 crore for the three months to March 2022. LIC’s Board of Directors has recommended a dividend of Rs 1.50 per share with a par value of Rs 10 each for the financial year ending 31 March 2022 .
LIC shares have witnessed continued selling pressure since listing. “Investors with a long-term perspective should continue to hold the stock, given the growth potential of the insurance industry in the country in the coming years and LIC in particular given its leading position in the sector,” Aamar Deo Singh, Advisory Director, Angel One, told FinancialExpress.com.
This is LIC’s first-ever quarterly result after its listing on the stock exchange earlier this month. Analysts say that despite a drop in net profit in the fourth quarter, LIC shares are quality stocks with strong fundamentals. “Its solvency ratio rose to 1.85 from 1.76 a year earlier. However, LIC’s 13-month persistence ratio declined this quarter. Inventors can wait a bit more downside and start accumulating around 750 levels,” Ravi Singh, Vice President and Head of Research, Share India Securities, told FinancialExpress.com.
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LIC, Sun Pharma, IRCTC, Delhivery, Campus Activewear, Jindal Steel shares as of May 31, 2022
The stock fell more than 15% from the issue price. “We might see more downward moves in the price ahead of negative secondary market sentiment. Investors with the long position can maintain a stop loss of Rs 720. New investors can follow the buy strategy,” said Akhilesh Jat, analyst at CapitalVia Global Research at FinancialExpress.com.
Earlier this month, the government raised Rs 20,557 crore by diluting its 3.5% stake in LIC through the IPO. LIC’s shares were listed at a discount of 8.62% at Rs 867.20 each on BSE compared to the issue price of Rs 949 per share.
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