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Business News/ Markets / Stock Markets/  LIC share price rises 5% to scale 52-week highs post Q3 results; Net profit rose 49% year-on-year
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LIC share price rises 5% to scale 52-week highs post Q3 results; Net profit rose 49% year-on-year

Stock Market today- Life Insurance Corporation Of India share price gained more than 5% to touch fresh 52-week highs in morning trades on Friday post Q3 results posted by the company on Thursday after the market hours. LIC had reported strong net profit growth of 49% year-on-year.

Life Insurance Corp. of India (LIC) share price gains more than 5% on Friday post Q3 Results on Thursday after the market hours. (Bloomberg)Premium
Life Insurance Corp. of India (LIC) share price gains more than 5% on Friday post Q3 Results on Thursday after the market hours. (Bloomberg)

Life Insurance Corporation of India (LIC) share price gained more than 5% to touch fresh 52-week highs in morning trades on Friday post Q3 results. The company had reported its financial performance on Thursday after the market hours.

LIC share prices is on a regular rise. The positive remarks from the Prime Minister regarding the company's performance already had led LIC's market capitalization surpassed 7 trillion for the first time on Thursday. LIC has delivered a healthy return of more than 28% now to its investors since its listing on 17 May, 2022. Share price has exceeded its issue price of 949 per share by more than 20% now. LIC share price scaled fresh 52 highs of 1175 on Friday on the BSE.

During the October-December quarter of FY24, Life Insurance Corporation of India (LIC) had reported a strong 49% year-on-year increase in net profit  to 9,444.4 crore compared to 6,334.2 crore in the same period last year.

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The strong  growth in earnings is likely to have been driven by an increase in net income from investments and also the growth in net premium income.

 The net premium income of LIC grew by 4.6% to 1.17 trillion ( 1,17,017 Crore) compared to 1.11 trillion ( 1,11, 787.6 Crore) in Q3 FY24. LIC's net income from investments during the December quarter rose by 12% year-on-year to 95,266.8 crore  

VNB (Value on new business) grew 14% year-on-year.

LIC also has been seeing strong growth during the ongoing quarter. Growth for LIC was  strong for the second consecutive month (up 14% yoy) during February, as per a Kotak institutional Equities report.

Also Read- Zomato share price jumps over 4% to 52-week high as analysts raise target after strong Q3 results; Should you buy?

LIC launched two new non-par and one ULIP products in the past three months, likely resulting in higher growth, said analysts. Increase in share of non-par may augur well for margins. 

LIC reported 14% year-on-year APE (annual Premium equivalent) growth in January 2024 and 31% yoy in December 2023 compared to -25% to +3% reported during the first eight months of the year. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 09 Feb 2024, 09:28 AM IST
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