LIC Share Price Target: India’s leading state-owned insurance services provider, LIC, is currently trading below its IPO price band, with continued weakness
in the stock. The large-cap PSU counter has remained in the negative zone across multiple horizons, declining by around 5 per cent in the past one month, 12 per cent in the last six months, 5 per cent over the past one year, and about 1 per cent in the last five years. After this underperformance, the question for investors is whether it is the right time to buy LIC shares or wait for further correction. According to global brokerage firm Citi, the current weakness suggests an attractive entry opportunity. The brokerage has maintained its ‘buy’ rating on LIC, expecting a gain of 66 per cent from Monday’s closing levels. The brokerage believes that LIC’s re-rating potential remains intact despite the recent stock underperformance. It also said that the company’s valuation continues to remain depressed relative to its strong underlying fundamentals. The brokerage highlighted that LIC’s market share recovery is already underway, aided by new product launches and normalisation in individual Annual Premium Equivalent (APE). It also expects the insurer’s margin outlook to improve steadily, due to better product mix towards non-par savings, annuities and retail protection segments.
Strong growth in VNB
Strong visibility on Value of New Business (VNB) growth is another key positive, with Citi projecting steady expansion over FY26 to FY28.
The brokerage further said that the current market valuation does not fully factor in mark-to-market gains in embedded value (EV), which it believes is an unwarranted gap.
According to Citi, the upside in LIC shares is likely to be driven by core EV strength, robust asset-liability management, and minimal capital or liability concerns going forward.
While the stock has remained a laggard in recent months, analysts believe improving business fundamentals and a gradual recovery in growth trajectory could make LIC an attractive long-term bet at current levels.
For now, brokerage views suggest that patient investors with a long-term horizon may consider accumulating the stock on declines rather than waiting indefinitely on the sidelines.
LIC Share Price Target
The brokerage has recommended the PSU insurance stock with a target price of Rs 1,345, implying a potential upside of 66.16 per cent from Monday’s close.
Shares of LIC on Tuesday traded at Rs 817.35, an increase of around 1 per cent from the previous closing, on the NSE.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
