The Kotak Institutional Equities brokerage firm believes that the shares of Life Insurance Corporation of India (LIC) are a good buy at a low price. They lowered their target price for LIC shares from Rs 1,250 to Rs 1,175 after a recent fall in the stock market.
Kotak mentioned that the recent drop in stock prices and business challenges, like new rules for surrender values, have made it tough for LIC. They said that changes in the stock market greatly affect LIC, which gets over half of its value from these investments.
LIC’s investment in stocks has dropped by 6.9% since the end of 2025, which is troubling. Even though they predict the company will take a loss in the second half of the financial year, they think the current low price of LIC shares is a good reason to buy, given the challenges ahead.
On the business side, LIC saw a 24% decline in a key sales metric called Annualized Premium Equivalent (APE) in the third quarter of 2025. During January and February, they saw declines of 11% and 21%, respectively, meaning they need a strong March to recover.
To boost profits, LIC has launched new products and changed its commission structure to keep customers longer. However, there are rumors of dissatisfaction with these changes, which might be contributing to the drop in sales.
Kotak also pointed out that there will be important changes in the company’s leadership soon. Two managing directors will retire in May 2025, and the current CEO will step down in June. The new leaders will need to come up with a solid plan to improve sales if business remains slow.
Currently, LIC’s shares are trading flat at Rs 743 as of 12:30 pm today.
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