LIC Share: Stock rises due to good results, 9% jump in intraday today, what should investors do?
LIC has earned a good profit in the September quarter.
On Monday, the stock gap of LIC ran openly.
Despite this boom, the stock is far from its IPO price.
New Delhi. Ever since India’s largest life insurance company Life Insurance Corporation of India (LIC) has presented the results of the last quarter, since then its shares have seen a good boom. The company reported a net profit of Rs 15,952 crore for the quarter ended September (LIC Q2 Results 2022), which is several times higher than Rs 1,433 crore in the same period last year.
In the June quarter, LIC had reported a net profit of only Rs 682.9 crore. Indicating business growth, the first year premium stood at Rs 9,124.7 crore for the quarter as compared to Rs 8198.30 crore a year ago. Net premium income stood at Rs 1.32 lakh crore as against Rs 1.04 lakh crore in the year-ago period.
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A few days before the release of the quarterly results, there was speculation about a plan to pay dividend or issue bonus shares to the shareholders of the government-controlled company. On October 31, LIC shares had gained over 2.5 per cent in early trade on account of similar reports.
9 percent jump in intraday today
The stock closed at Rs 628 on the BSE on November 11, which was about 1.17 per cent higher than the previous day’s close. Today, in the early trade on Monday, the stock of LI showed a rise of about 9 percent, but within an hour this increase was reduced to only 5 percent. Today it opened at Rs 663.95 on the National Stock Exchange (NSE), while it closed at Rs 627.70 on Friday. Today it has made a high of Rs 684.90.
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Though the stock has gained momentum in the past few days, it is a long way off from reaching the value held at the time of the company’s historic IPO. LIC made its debut on the stock exchange in May this year, but since then the shares have fallen by about 30 per cent.
What should investors do now?
ICICI Securities has given a target price of Rs 917 (LIC Share Price Target) while advising to buy LIC shares. Sumit Bagadia, executive director of Choice Broking, has said about this stock that long-term investors should wait for the level of Rs 700. He told that according to the chart pattern, there will be a breakout above Rs.700. Currently it is taking good support around Rs.630. If this support breaks then the share price can go up to Rs 580, so on breakout above 700 it should be bought and a stoploss of Rs 630 should be kept.
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Anuj Gupta, Vice President, IIFL Securities, said about LIC’s stock that it has shown a reversal pattern on the chart. It can go up to Rs 700 to 720 in the short term. For this target, it would be appropriate to buy it with a stoploss of Rs.630.
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Tags: Life Insurance Corporation of India (LIC), Money Making Tips, share market, stock market, stock tips, stocks
FIRST PUBLISHED : November 14, 2022, 10:57 IST