New Delhi: After trading below its issue price for a very long time, Life Corporation (LIC) shares have gained momentum. The LIC stock got listed in May 2022 at 9 per cent below premium at Rs 867.20 per equity share.
Stock Market expert Dr (CA) Sharad Kohli recommended buying LIC shares at current price with a long term perspective. He said investors interested in buying the shares of the government-controlled insurance company should pump in their money for at least 3-5 years to earn subsequent gains.
Speaking to News9, the expert said, Life insurance Corporation had come out with a very hyped IPO sometime ago. However, a lot of investors were disappointed as the stock gave negative returns for a very long term and finally when the stock crossed the issue price, investors had a sigh of relief.
Commenting on the potential of the LIC stock, Dr Kohli said LIC is planning to move into the health insurance business, which is a very good move as it has the largest share of insurance in India and insurance India’s penetration is growing by the day. The insurance sector is penetrating into rural areas as well, he added.
“So I think LIC is one of the Navratnas of India which is doing exceedingly well since Independence and one of the oldest in the insurance business trade. Private players are giving competition to LIC but its network is so big that it is partly immune from that competition,” he said.
Giving a Buy call on LIC shares, the stock market expert said investors can pump their money in LIC stock for a long term perspective, i.e. 3-5 years.
“The LIC stock is not for short term trading, because short term movements are extremely volatile and you are not able to judge the performance of the company,” he said.
LIC share price and dividend
The LIC shares were trading at Rs 994.60 per equity share on NSE on May 29, 2024. The state-run life insurer declared Q4 Results 2024 and reported 12 per cent increase in annual profit. Life Insurance Corporation reported a net profit of Rs 40,676 crore in FY24 compared to Rs 36,397 crore in FY23. The company said it will pay its shareholders a dividend of ₹6 for every share held for the financial year 2024. The insurance behemoth announced a dividend of Rs 6 for every share held for the financial year 2024.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
For long term profits, Stock Market expert Dr (CA) Sharad Kohli suggested buying Life Corporation (LIC) shares at current levels with a 3-5 years perspective to get good returns. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
