LIC Share Price Hits Record High Ahead of Q3 Results Today: Buy, Hold or Book Profit?

Shares of the Life Insurance Corporation (LIC) reached a new peak today ahead of the announcement of its Q3 results for the current financial year. The LIC share price opened higher and quickly soared to ₹1,100 per share on the NSE. This surge was driven by positive expectations of the LIC Q3FY24 results, particularly in terms of new business premium growth.

Experts believe that LIC’s Q3 results are likely to be strong, with healthy new business premium growth. Siddhartha Khemka, Head of Retail Research at Motilal Oswal, anticipates positive results from the insurance giant. The market is bullish on LIC shares due to the strong business and growth outlook expressed by PM Narendra Modi in parliament.

Considering the chart patterns, Sumeet Bagadia, Executive Director at Choice Broking, believes that LIC shares are looking positive. For existing investors, he recommends holding the stock with a stop loss at ₹1,020 per share. In the short term, the stock may rise to ₹1,150 per share. Fresh investors can adopt a strategy of buying on dips, with a stop loss at ₹1,020 and short-term targets of ₹1,125 and ₹1,150 per share.

The announcement of LIC’s Q3 results has generated significant interest among investors, as the insurance behemoth is a PSU (public sector undertaking). LIC is expected to report a 12.2% YoY increase in profit, amounting to ₹7,108.70 crore for the December quarter. The Annual Premium Equivalent (APE) is projected to decrease by 14.3% YoY to ₹10,561.70 crore. Value of new business (VNB) is estimated at ₹1,641.10 crore, with a VNB margin expansion from 14.6% to 15.5%. LIC’s Assets Under Management (AUM) are expected to rise by 11.9% YoY to ₹49,61,600 crore.

LIC’s board of directors will also consider the declaration of an interim dividend for the financial year 2023-24. LIC shares have been performing well recently, surpassing its IPO issue price of ₹949. Prime Minister Narendra Modi has acknowledged the significant growth of LIC and dismissed any rumors surrounding the company.