Life Insurance Corporation of India (LIC) shares jumped 3% on Tuesday after the company reported healthy Q1 FY25 results. The stock has gained 35% so far this year, outperforming the market.
LIC’s Q1 FY25 performance was modest, with the company’s non-par APE share within the Individual business growing by 943 basis points to 18.32%. The Value of New Business (VNB) margin also improved during the quarter.
Despite the modest Q1 performance, LIC’s valuation remains the main draw for investors. The company has a market cap of over ₹6.7 trillion and a P/E ratio of 16.1.
Main Points
LIC Operations in Bangladesh Partially Resuming
In other news, LIC’s operations in Bangladesh are partially resuming after a brief disruption. The company is in touch with Bangladeshi authorities to ensure smooth operations.
LIC Receives GST Demand Notice for Karnataka
LIC has received a communication and demand order for Goods and Service Tax (GST), interest, and penalty for the state of Karnataka. The order is appealable before the Commissioner of Commercial Tax Appeals, Karnataka. The demand includes:
- GST: ₹1,83,32,790
- Interest: ₹1,79,19,690
- Penalty: ₹18,33,280
LIC’s share price has been volatile in recent weeks, with the stock trading in the range of ₹1,064 to ₹1,088 on Tuesday. The 52-week high is ₹1,222, while the 52-week low is ₹597. The stock is currently trading close to its 50-day moving average and comfortably above its 200-day moving average. It needs to take support around the 50-DMA level to continue its upward move.
LIC’s Fundamentals Remain Strong
Despite the recent volatility, LIC’s fundamentals remain strong. The company has an operating revenue of ₹866,865.90 crore on a trailing 12-month basis, with an annual revenue growth of 9%. Its pre-tax margin of 5% and ROE of 49% are also impressive. Institutional holding in LIC has increased in the last reported quarter, which is a positive sign for the stock.
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