Shares of Life Insurance Corporation (LIC) of India were trading on a flat note ahead of the firm’s Q3 earnings set to be announced today. LIC stock gained 0.60 per cent intraday to Rs 613.75 against the previous close of Rs 610.10 on BSE. Shares of LIC opened higher at Rs 614.95. Market cap of LIC rose to Rs 3.88 lakh crore on BSE. Total 0.31 lakh shares of the firm changed hands amounting to a turnover of Rs 1.94 crore. The stock has been gaining for the last 4 days.
The stock is down 13% in a month. The stock hit a 52-week high of Rs 920 on May 17, 2022 and a 52 week low of Rs 582.45 on February 1, 2023.
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In terms of technicals, the relative strength index (RSI) of RIL stands at 29.2, signaling it’s trading in the oversold territory. LIC has a price to equity ratio of 95.44. LIC shares are trading higher than the 5-day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
In the second quarter of the current fiscal, LIC reported a standalone net profit of Rs 15,952 crore for the quarter ended September, sharply higher than Rs 1,433 crore a year ago. Net premium income for the quarter increased 26.6% YoY to Rs 1.32 lakh crore. The net income from investments rose 10% YoY to Rs 84,104 crore.
Emkay Global expects LIC to report a profit of Rs 4,580.80 crore against Rs 234.90 crore in the year-ago quarter. It sees APE (annual premium equivalent) at Rs 13683 crore, value of new business (VNB) at Rs 1,965.20 crore and VNB margin at 14.4 per cent.
“We expect LIC’s APE to grow 30 per cent YoY in 9MFY23, driven by 19 per cent YoY growth for Q3FY23 and 37 per cent YoY growth for H1FY23. We expect LIC to deliver VNB margin in line with H1FY23 margins, at 14.5 per cent for 9MFY23. With the change in the accounting policy, to transfer surplus funds from the non-par fund to the shareholders’ fund, we expect LIC to report PAT of Rs 4,580 crore in Q3FY23. For 9MFY23, we expect AUM to grow 10 per cent YoY to Rs 44,22,600 crore,” the brokerage said.
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