LIC’s net premium has increased by 18 percent in the March quarter. Profits have increased on a yearly basis. However, the income from investment has been flat.
LIC Stock Strategy: Weakness has been seen in the shares of the country’s largest insurance company LIC today i.e. May 31. In the intraday, the stock fell at Rs 810, while on Monday it closed at Rs 838. The company has released the results for the March quarter on Monday, which the market did not like. LIC’s profit has decreased by about 17.5 percent on a yearly basis. Although the revenue of the company has increased. By the way, since the listing on May 17, till now the company’s stock has never been able to touch its issue price. In such a situation, what should the investors who have invested money in it, do.
What should investors do?
Swastika Investmart Ltd. Head of Research Santosh Meena says that LIC’s net premium has increased by 18 percent in the March quarter. However, the income from investment has been flat. Due to reduction in provision for doubtful debt, the surplus grew by 97 percent on a year-on-year basis. On the other hand, if we talk about the entire financial year, the company’s profit has increased by 40 percent in FY22. Management expects clarity on VNB margins and EV after the June 2022 report. At the same time, in the next 5 years, the management expects the company’s margins to reach the overall industry average. He says that since the listing, the company’s stock has seen a correction. Investors who have stocks can keep it in their portfolio for a long period.
How were the company’s quarterly results?
LIC has made a profit of Rs 2409 crore in the March quarter, which is 17.41 percent less than the same period a year ago. At the same time, the company’s profit during the entire financial year stood at Rs 4043.12 crore, which is 39.4 percent higher on a yearly basis. LIC’s total revenue for the quarter ended March 2022 stood at Rs 2,11,471 crore, which is an increase of 11.64 per cent year-on-year. The company has also announced a dividend of Rs 1.50 per share. The company said that its net premium income increased to Rs 1,44,158.84 crore during the March quarter. The company’s income from renewal premium has increased by 5.37 percent to 71,472.05 crore.
listing was weak
LIC’s stock was listed in the market on 17th May. The company’s shares were listed on the BSE at Rs 867, while the issue price was Rs 949. In this sense, the stock was listed in the market at a fall of Rs 82 from its issue price. That is, the investors suffered a loss of 9 percent on the listing. The high for the stock is Rs 919 and the low of Rs 801 so far.
(Disclaimer: Stock advice is given by experts. These are not the personal views of The Financial Express. Markets are subject to risk, so take expert opinion before investing.)
