LIC shares hit record high, top Rs 1,100 level ahead of Q3 results; here's earnings forecast

Shares of Life Insurance Corporation of India (LIC) on Thursday made a fresh all-time high and hit the 1,100 level ahead of the life insurer's quarterly earnings later today. The stock jumped 7.23 per cent to hit an all-time high of 1,120.65 on BSE, with Emkay Global expecting the state-run firm to post 12 per cent jump in profit, and the Prime Minister Narendra Modi hailing fundamentals of PSU stocks, including LIC.

The LIC board would be considering a proposal of interim dividend for FY24 today. Emkay Global sees LIC clocking a 12.2 per cent year-on-year (YoY) jump in net profit at Rs 7,108.70 crore for the third quarter compared with Rs 6,334.20 crore in the corresponding quarter last year.

The domestic brokerage said Annual premium equivalent (APE) may drop 14.3 per cent YoY to Rs 10,561.70 crore compared with Rs 12,317 crore in the sam quater last year. Value of new business (VNB), Emkay Global said, may come in at Rs 1,641.10 crore against Rs 1,801 crore YoY while VNB margin could expand to 15.5 per cent from 14.6 per cent, the domestic bkoerage said.

Also read: LIC to share Q3 results, announce interim dividend today. Profit may rise 12%, says Emkay

Emkay said asset under management may jump rise 11.9 per cent at the end of the quarter to Rs 49,61,600 crore compared with Rs 44,34,900 crore YoY.

On Wednesday, the Prime Minister Narendra Modi said many rumours were spread about the largest life insurer in the past and yet the stock was trading at record high levels.

"Adarniya sabhapati ji, mein sina taan ke kehna chahta hoon, aankhein uunchi karke sunana chahta hoon, aaj LIC shares record sthar par hain," PM Modi said in his address at Rajya Sabha.

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