LIC Share Price Gains After Mixed Q4 Results

Following a mixed set of fourth-quarter results, Life Insurance Corp. of India saw its share price inch 4.29% higher.

The company reported a 3.2% decline in net premium income, which stood at Rs 1.48 lakh crore, compared to Rs 1.53 lakh crore in the same period last year.

LIC's net profit jumped by 38%, reaching Rs 19,038.7 crore, significantly surpassing Bloomberg's estimate of Rs 12,395 crore. Moreover, LIC's solvency ratio improved to 2.11% from 1.98%, indicating stronger financial health and stability.

But there was an 11% drop in the annual premium equivalent, which fell to Rs 18,853 crore from Rs 21,180 crore.

Despite the decline in net premium income and annual premium equivalent, the substantial increase in net profit and improved solvency ratio seems to have bolstered investor confidence.

The scrip rose as much as 4.29% to Rs 908.60 apiece. It pared gains to trade 3.58% higher at Rs 901.40 apiece, as of 09:29 a.m. This compares to a 0.21% decline in the NSE Nifty 50 Index.

It has risen 11% in the last 12 months. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 74.

Out of 21 analysts tracking the company, 16 maintain a 'buy' rating, four recommend a 'hold,' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 20% from the last regular trade.