What would be the LIC Share Price target for 2023, 2024, 2025 and 2030 in the coming year, in this post we will try to cover each and every aspect that will impact the Lic share price in long term as well as short term, how lic has performed from last few years, and what would be the future prediction for lic share price. Let’s Go…
What is LIC India
Life Insurance Corporation of India (LIC) is a state-owned insurance group and investment company. LIC offers a range of insurance products, including life insurance, health insurance, and pension plans, as well as investment products such as mutual funds and bonds.
The company has a network of branches and agents across the country and serves millions of policyholders. In addition to its insurance and investment businesses, LIC also engages in corporate social responsibility initiatives and contributes to various social and economic development projects.
Start of LIC
Life Insurance Corporation of India (LIC) was established in 1956 as a state-owned insurance company. Prior to that, the insurance industry in India was primarily composed of foreign insurance companies, with a few Indian companies operating in the sector as well.
The Government of India saw the need to establish a domestic life insurance company in order to provide insurance coverage to a larger portion of the population and to mobilize long-term savings for development.
To achieve this, the government passed the Life Insurance of India Act in 1956, which nationalized the life insurance industry in India and created the Life Insurance Corporation of India.
Since its establishment, LIC has played a significant role in the development of the insurance industry in India. It has also contributed significantly to the country’s economy through its various insurance and investment products, as well as its corporate social responsibility initiatives. Today, LIC is the largest insurance company in India, serving millions of policyholders across the country.
LIC IPO
Honorable Finance Minister Nirmala Seetharaman had announced in her Budget Speech for FY 2020-21 that Government of India shall sell its stake in Life Insurance Corporation of India (LICI) through an Initial Public Offer
As per DRHP, The Selling Shareholder (President of India acting through the Ministry of Finance, Government of India) offered for sale up to 316,249,885 Equity Shares i.e. upto 5% of its stake in LICI. Further, there would be reservation for shares for eligible policyholders and eligible Employees.
LIC share price prediction based in technical analysis
On 17th May 2022, Lic share was lic share was listed on exchange and share hit the price of ₹918.95. From that level share was corrected and hit a lower level of ₹588 in October month 2022.
From the lower level we got some upside and the share hit the level of ₹754.25 on 20th Dec 2022.
Now again share the correction started and currently share is trading near its support zone that is ₹650.
If the Lic share breaks this support level then share could touch to its previous low that is ₹588.
If the share respect this support level and bounce back from this level then share can go to its recent swing high that is ₹736. So let’s check which target first comes?
LIC Share Price Target 2023
| Year | LIC Share Price in 2023 |
| 2023 | ₹620 to ₹588 |
LIC Business Overview:
The company offers a variety of insurance products, including life insurance, health insurance, and pension plans.
The primary purpose of life insurance is to provide financial protection to the policyholder’s dependents in the event of the policyholder’s death.
When an individual purchases a life insurance policy, they pay premiums to the insurer in exchange for a death benefit that will be paid to the beneficiary designated by the policyholder in the event of their death.
Life insurance can be classified into two main types:
- Term insurance :Term insurance provides coverage for a fixed period of time, after which the policy expires and is no longer in effect.
- Permanent insurance: Permanent insurance, on the other hand, provides coverage for the entirety of the policyholder’s life and typically includes an investment component, such as a cash value.
Financial Planning: In addition to providing financial protection to the policyholder’s family, life insurance can also be used as a financial planning tool to help individuals save for their retirement, pay off debts, and achieve other financial goals.
LIC is a dominant player in the Indian life insurance market and is known for its extensive network of agents and branches, as well as its strong brand recognition and reputation.
Life Insurance Industry Performance
- The Total First Year Premium of Life Insurance Corporation of India (LIC) increased by 7.92 per cent to ` 1,98,759.85 crore in FY 2021-22 as compared to ` 1,84,174.57 crore the previous fiscal.
- The number of policies sold increased by 3.56 per cent to 21,754,965 in the FY 2021-22 from 21,007,234 in the previous financial year.
- The market share of LIC stood at 63.25 per cent in total first year premium for FY 2021-22 and 74.62 per cent in the Number of New Policies as at 31.03.2022.
- The Life Insurance Corporation of India (LIC) recorded a 12.66 per cent increase in Group New Business Premium in FY 2021-22 with ` 1,43,938.59 crore against ` 1,27,768.06 crore for the FY 2020-21.
- As per the IRDAI Annual Report 2020-21, the Total Fund of the Life Insurers as on 31.03.2021 was ` 44.80 lakh crore of which the Life fund contributed about 65.05 percent i.e. ` 29.14 lakh crore.
LIC Offices in India
As on 31.03.2022, there were 8 Zonal Offices located at Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna.
There were 113 Divisional Offices, 2,048 Branch Offices, 1564 Satellite Offices (SOs) and 1,170 Mini Offices.
Agency strength :
The total number of Agents on our Roll is 13,26,432 as at 31.03.2022 as against 13,53,808 as on 31.03.2021.
The number of Active Agents is 11,32,535 as at 31.03.2022 as compared to 11,40,540 as on 31.03.2021.
Staff Strength:
The number of employees of the Corporation as on 31.03.2022 is 1,04,036 as against 1,08,987 at the end of the previous financial year
MARKETING ACTIVITIES:
During the year 2021-22, the Corporation under Individual New Business, has procured 2,17,18,695 Policies with a First Year Premium Income of ` 54,821.27 Crores.
The achievement to budget in NOP was 94.43% and in FYPI 88.22 %. ` 19,954.10 crore premium earned under 2,32,715 policies of Pradhan Mantri Vaya Vandana Yojana.
Lic Share Price Target 2024-2025
Lic share price target for 2024 and 2025 would be evaluated, how company perform in the coming years, but by the current and previous year performance company’s fundamentals indicates , the down side for the share is limited and in coming year we can get good upside move. Therefore Lic share price target for 2024 would be₹ 870 and ₹923.
LIC Share Price Target 2024
| Year | LIC Share Price in 2024 |
| 2024 | ₹ 870 to ₹923 |
Key Points that will affect LIC Share price:
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 76.4%
- Stock is trading at 40.0 times its book value
- The company has delivered a poor sales growth of 7.92% over past five years.
- Earnings include an other income of Rs.77,140 Cr.
- Stock Price to earnings ratio (PE) is 21.6.
- Lic Share face value is ₹ 10.0.
Based on the above parameters for the year 2025, the target for Lic share would be ₹1050 and ₹1180.
LIC Share Price Target 2025
| Year | LIC Share Price in 2025 |
| 2025 | ₹1050 to ₹1180 |
LIC Subsidiary Companies
Life Insurance Corporation of India has the following Subsidiaries and Associate Companies operating in India:
- LIC Pension Fund Limited •
- LIC Cards Services Limited Associate Companies
- IDBI Bank Limited
- LIC Mutual Fund Trustee Private Ltd
- LIC Housing Finance Limited
- LIC Mutual Fund Asset Management Limited
- IDBI Bank Trusteeship Services Ltd.
- LICHFL Asset Management Company Limited
Foreign Subsidiaries:
- LIC (International) BSC (c), Bahrain
- LIC (Nepal) Ltd
- LIC (Lanka) Ltd and
- LIC of Bangladesh Ltd.
- Wholly Owned Subsidiary: LIC (Singapore) Pte Ltd
LIC Stake in their Subsidiary and Associate Companies:
Life Insurance Corporation of India (LIC) is the promoter of the IDBI Bank with a majority stake of 49.24% in the total shareholding as at March 31, 2022.
LIC Mutual Fund (LIC Subsidiary)
- LIC Mutual Fund has mobilized gross sales of ` 89,485 Crores from all live schemes. The total number of investors as on 31.03.2022 stood at 5,49,971. Average Assets under Management (AAUM) was ` 18,252 Crores for the last quarter of 2021-22 and it ranked 22nd in terms of AAUM amongst Mutual Fund Industry.
- With a network of 181 Investor service centers, 30 Area Offices and 152 Sales Team member, LIC MF is present in more than 200 locations spread over length and breadth of the country.
- . LIC MF has one of the widest distribution networks comprising Mutual Fund Distributers, National Distributors, Wealth Management Firms, Banks, and Key Business Partners.
- LIC MF has an innovative product feature called “APPS” (Auto Premium Payment System) whereby the customers can invest their money in liquid or short term schemes and their LIC premium is paid from the Mutual Fund account. This is an unique feature offered only by LIC MF in the industry.
- LIC Mutual Fund is among the 1st Mutual Fund to offer Exchange Traded Fund in debt space with LIC MF GSEC Long Term ETF.
LIC share latest news video
Source: ET Now Youtube Channel
LIC Shareholding Patterns:
LIC Official Website: www.licindia.in
LIC Share Price Target 2030
- Life Insurance Corporation (LIC) is the largest insurance provider company in India.
- LIC is ranked fifth globally by life insurance GWP and 10th globally in terms of total assets.
- LIC is the largest asset manager in India with an AUM of Rs 40.1 lakh crore as of Dec 2021, which is 17.0% of India’s GDP.
- Its investments in listed equity represented around 4% of the total market capitalization of NSE and more government bonds than the RBI.
- The brand LIC was recognized as third strongest and 10th most valuable global insurance brand as per the ‘Insurance 100 2021 report’ released by Brand Finance and now has become synonymous with insurance in India.
- The Company made a total profit after tax amounting to ` 4043.04 crore, (Standalone) during the year2021-22 to the Reserves which is an increase of 39.39% as compared to previous year.
For Future prospective we can see good growth in insurance sector and lic is the leader, but the major concerned is lic is getting tough competition from its peer companies. Therefore for the year 2030 lic share price target would be ₹2200 and ₹2400. It’s a conservative target.
LIC Share Price Target 2030
| Year | LIC Share Price in 2030 |
| 2030 | ₹2200 to ₹2400 |
Conclusion
Lic is a strong fundamental based company, there is no debt on it. Lic has a vast network of their agent across the country, because of that they have highest market share in the country, but from few year lic is losing its market share, other private companies are capturing their market share. So in coming year it would be interesting to know how Lic handle this situation.
This is the end of the post, write your valuable suggestion below in comment section. Thanks for reading.
LIC Share FAQ
Who the owner of Lic India?
Lic India is a public sector company, Indian Government is the owner of Lic, having majority of stake.
What is the LIC Market cap?
LIC Market cap is Rs 464918.96 Crore. (at the time of writing 26-Dec-2022)
Is Lic a large cap company?
Yes Lic is a large cap company.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
