BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities' IPO Report
Given the under-penetration of life insurance in India, the higher protection gap, and the improving financialisation of savings, we expect Life Insurance Corporation of India to maintain its market leadership position adequately supported by good business traction.
Furthermore, LIC intends to increase its share of high-margin non-par products to improve its margins which will augur well for the company over the long term.
Additionally, the company's new business premium/annual premium equivalent growth has witnessed a strong rebound, enabling it to gain market share in Q4 FY22.
We believe LIC would trade at attractive valuations as at the upper end of the price band, the stock would trade at ~1.1 times market cap/enterprise value (H1 FY22 embedded value) versus the industry average of approx. three times.
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