LIC shares witnessed best intraday gain since listing after reporting second quarter profit. should you buy

 

Bull figure outside the Bombay Stock Exchange in Mumbai, India.

• LIC reports net profit of ₹15,952 crore in the second quarter as against ₹1,434 crore a year ago

Shares of Life Insurance Corporation (LIC) rose 9% to ₹682 per share on the BSE in early session on Monday, posting its best intra-day percentage gain since listing in May, extending gains for the second time. Quarter ending September 2022 after reporting Rs.

National insurer LIC reported a rise in net profit to ₹15,952 crore in the second quarter from ₹1,434 crore a year ago, on the back of a jump in premium income and investment income as well as huge gains from changes in its accounting policy.

“Increase in non-participating mix and changes in surplus distribution policy are important growth drivers of value of new business (VNB) and in turn embedded value (EV). This, through the lens of Indian life insurance (specifically the sum assured) ) against strong growth outlook, makes LIC a strong investment proposition. ICICI Securities said, "concerns over equity sensitivity to EVs are over and appreciated the relative ease of increasing VNB margin through change in mix The brokerage house has maintained Buy rating on LIC shares with a target price of ₹917 per share.

“Long term investors should wait for a possible breakout given the ₹700 level on the chart pattern. The insurance stock is expected to witness a strong rally after closing above the ₹700 per share level. Currently, the stock has support near ₹630 but breaking this support, LIC share can move further towards ₹580 levels. Hence long term investors are advised to wait for breakout and breakdown. They should buy either above ₹600, placing a stop below ₹580 or above ₹700, placing a stop below ₹630, said Sumeet Bagadia, executive director, Choice Broking.

"LIC share price has given trend reversal on chart pattern in early session. Stock may move towards ₹700 to ₹720 per share in near term. Those having this stock in their portfolio are advised to hold short term Maintain upside target for ₹720 keeping stop loss at ₹630. For new investors with short term view, maintain tight stop loss at ₹630 per scrip for target of ₹720 at current levels Stocks," said Anuj Gupta, Vice President - IIFL Securities.