LIC share price: State-run life insurance stock slumps to record closing low

 

LIC share price: State-run life insurance stock slumps to record closing low

LIC Share Price

LIC share price: Shares of state-run insurance behemoth Life Insurance Corporation (LIC) hit a record low on Monday, falling for the seventh day in a row. LIC shares fell by as much as Rs 18.7 or 3.2 per cent to hit an all-time low of Rs 566 apiece on BSE during the session, before settling at Rs 567.8 apiece for the day — a record closing low. 

At the current level, LIC shares are available at a discount of 40 per cent to the upper end of their IPO price range. Having completed nine-odd months on Dalal Street, LIC shares have failed to command a premium in the secondary market over the IPO price. 

According to Zee Business research, as of February 23, LIC’s investment of Rs 31,127 crore in various Adani group firms has lost more than 40 per cent of its value.

Also Read: LIC’s net income jumps manifold to Rs 8,334.2 crore in December quarter

The LIC stock has gyrated in a range of Rs 354 — between Rs 566 and Rs 920 — during this period.  It has fallen 13.5 per cent in the past one month as against a 0.4 per cent decline in the Nifty50 benchmark index. 

As of February 27, the LIC stock has tumbled over 35 per cent in the last one year, a period in which the headline index has risen per cent.

JM Financial expects a rerating for LIC on the back of the insurer’s large customer base, huge agency network, strong brand equity and sovereign guarantee attached to its policies.

The brokerage retained a ‘buy’ rating on LIC with a target of Rs 940 per share.

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