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LIC shares made a new low today when it hit its intraday low of 827.35 apiece levels on NSE. Despite huge upside in key benchmark indices today, LIC share price today opened upside and started retracing post-profit booking trigger. Shares of insurance behemoth went on to hit a new low today, logging more than 12 per cent dip from the upper price band of LIC issue price of 949 per equity share.

According to stock market experts, LIC shares are a quality stock with strong fundamentals. They advised fresh investors to wait for some more dip and initiate accumulating at around 800 levels maintaining stop loss at 735 apiece levels.

Speaking on LIC share price outlook, Ravi Singhal, Vice Chairman at GCL Securities said, "LIC shares are one of the quality stocks available in Indian stock market at discounted price. Those who believe in a diversified portfolio should know that out of net AMC strength at NSE, LIC holds around 4 per cent. So, having LIC in one's portfolio itself a diversification of one's portfolio."

Highlighting the fundamentals of LIC shares, Santosh Meena, Head of Research at Swastika Investmart Ltd said, "The insurance giant, LIC Ltd. is currently trading below its IPO price. The issue was priced at a price to embedded value of 1.1x, which is at a discount compared to its domestic as well as global peers. This valuation discounts concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short term persistency ratios. However, we believe India's highly underserved life insurance market is still in its infancy and is well positioned to capitalize on the enormous growth potential. LIC has a number of competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network." He said that investors with long term view can think of buying LIC shares around 800 as it is a good buying zone for insurance stock.

Echoing with Santosh Meena's views, Ravi Singhal of GCL Securities said, "One can buy LIC share in 770 to 800 range maintaining strict stop loss at 735 levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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