LIC occupies a dominant position in the insurance sector. The company has the largest market share in this sector and also a very strong customer base.
LIC Stock Latest Price: Today i.e. on June 15, good recovery is being seen in the shares of insurance company LIC. Today the stock is showing an upward trend for the second consecutive day. In today’s business, the stock of LIC has strengthened by about 5 percent and reached a price of Rs 707. Whereas on Tuesday it closed at Rs 674. The stock had touched a record low of Rs 663 on Monday this week. Experts say that there has been a significant decline in the stock and now support is coming downwards. Today it has a recovery from the retracement level. Long term investors should stick to it. At the same time, some shares can be added on every fall.
what investors should do
Anuj Gupta, VP-Research, IIFl believes that LIC shares have recovered from the bottom after a significant fall. He says that LIC occupies a dominant position in the insurance sector. The company has the largest market share and strong customer base in this sector. In such a situation, there is no concern about its outlook. Although some of the market share of the company has shifted to private companies, the profitability has been somewhat less as compared to private companies. But the way in which strong growth is going to come in the insurance sector, LIC will get the entire loss due to it being on the leading position. He says that long-term investors should stick to it instead of taking any decision in a hurry. Talking about the short term, a level of Rs 760 can be seen in the stock soon.
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Swastika Investmart Ltd. Head of Research, Santosh Meena also says that one can invest in LIC shares at the current price. Long term investors need not worry. Insurance is a long term business, so the benefits of wealth development and compounding will accrue over time. The fundamentals of LIC are strong, the potential for huge growth in the insurance sector in India is very high.
Shares at 26% discount from IPO price
Today the stock of LIC has recovered and has reached a price of Rs 707. However, the stock is still trading at a discount of 26 per cent as compared to the IPO price. The share price under the IPO was kept at Rs 949. At the time of IPO, the valuation of the company was estimated at 6 lakh crores. Whereas now its market cap has come down to 4.46. That is, till now the investors of LIC have got a setback of 1.54 lakh crores.
(Disclaimer: Stock investment advice is given by experts. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
