LIC Share Price Target: Shares of government company Life Insurance Corporation of India (LIC) remain on the radar of investors on 6 February…
highlights
- LIC has reported a 17% rise in profit in its third quarter results released on Thursday, February 5.
- After this, LIC shares will remain in discussion for the next few days.
- Should you buy or sell a stock after quarterly results?
Shares of government company Life Insurance Corporation of India (LIC) remain on the radar of investors on 6 February. When the market opened on Friday, February 6, LIC shares were on a strong note in early trade. Around 9.40 am, the shares were trading in the green at Rs 890.45, up 5.95%.
LIC Share: Brokerage’s view on the stock
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- Bernstein maintains neutral stance on LIC with Market-Perform rating and target price of Rs 940.
- Market-Perform rating with target price of ₹940
- Strong topline with margin expansion in 3QFY26 despite GST
- New business margin increased to ~21%
- Margin increase driven by mix and yield curve benefits
- Impact of GST reduced through cost discipline
- Management indicated that the process of selling government stake will start soon.
- Possibility of dividend policy after IFS transition
City gave target of 49% upside
- Citi maintains ‘Buy’ rating with a target price of Rs 1,345.
- The brokerage said that VNB has increased by 65 percent year-on-year due to favorable base.
- The brokerage said that VNB has increased by 65 percent year-on-year due to favorable base.
- Citi said the product mix is ​​improving, with higher non-par share.
- Citi sees scope for higher dividend payout in the medium term.
How were the LIC results?
The company has reported a 17% year-on-year rise in consolidated net profit at Rs 12,930 crore for the December quarter as against Rs 11,008 crore in the same period last year.
Net premium income in Q3FY26 stood at Rs 1.26 lakh crore, which is 17% higher than Rs 1.07 lakh crore in the same period last year. On a quarterly basis, profit after tax grew 28% from Rs 10,098 crore reported in Q2FY26, while net premium income declined marginally by 0.7% on a quarter-on-quarter basis.
During the nine months ended December 31, 2025, LIC sold 1,16,63,856 policies in the individual segment, slightly lower than 1,17,10,505 policies sold in the same period last financial year, showing a decline of 0.40%.
On the basis of Annualized Premium Equivalent (APE), total premium for 9MFY26 stood at Rs 44,007 crore. Of this, the contribution of individual business was 62.61% or Rs 27,552 crore, while the contribution of group business was 37.39% or Rs 16,455 crore. In the individual business, Par products accounted for 63.54% of APE at ₹17,507 crore, while Non-Par products accounted for 36.46% or ₹10,045 crore.
Individual non-par APE increased to ₹10,045 crore for the nine months ended December 31, 2025, compared to ₹6,813 crore in the same period last year, showing a growth of 47.44%.
Value of new business (VNB) for the nine-month period increased to ₹8,288 crore from ₹6,477 crore a year ago, a rise of 27.96%. Net VNB margin increased 170 basis points to 18.8% compared to 17.1% in the same period last year.
The solvency ratio of LIC became 2.19 as on December 31, 2025, which was 2.02 a year ago. Assets under management (AUM) increased to ₹59,16,680 crore as of December 31, 2025, from ₹54,77,651 crore as of December 31, 2024, showing a growth of 8.01% year-on-year.
The total expense ratio for the nine months ended December 31, 2025 declined by 132 basis points to 11.65% compared to 12.97% in the same period last year.
Life Insurance Corporation of India (LIC) is continuously facing difficulties in the equity market, the company’s shares are trading much below its IPO. The state-owned insurer continues to face selling pressure, reflecting major concerns about the stock’s short-term performance.
The large-cap public sector company has shown consistent weakness across multiple time horizons, reflecting continued investor skepticism. The stock’s performance metrics show a consistent declining pattern.
The insurance service provider company is currently trading about 15% below the IPO price band. This discount to the offer price measures the difference between market expectations and the actual price in subsequent trading.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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