Life Insurance Corporation of India, the biggest life insurer in India, is expected to go up by over 50% from its current price, as analysts say that the deepening of the EV discount looks attractive. The stock has fallen more than 10% this year, and more than 5% last year, but it’s still trading at around 35% below its issue price.
ICICI Securities maintained ‘Buy’ rating on the stock based on 0.8x FY25E EV of ₹7.5 trillion. Its target price is ₹917 per share, which is 51% higher than Wednesday’s closing price.
The target price for the shares of Life Insurance Corporation of India (LIC) is higher than the IPO price, but it’s still lower than the issue price. Investors were really interested in the company when it went public in May 2022, and the shares were quoted at ₹ 867.20 on the BSE, a discount of 8.62% from the issue price of ₹949 per share.
LIC was the 5th most valuable company in India at the time it went public. It had a market cap of around ₹5.48 lakh crore. But since then, it’s lost more than ₹1.6 lakh crore and is now valued at ₹3.85 lakh crore.