LIC Shares Increase by 2 percent Post PSU

LIC Shares Increase by 2 percent Post PSU Obtains Rs 21,740cr Refund

Overview

In a significant development Life Insurance Corporation of India (LIC) saw a notable rise in its stock shares after receiving a substantial reimbursement the Income Tax Department This occurrence, coupled with the introduction of a novel product targeted towards parents, has bolstered positivity surrounding LIC. Let’s delve into the specifics of this refund and the fresh product offering from LIC.

LIC Receives Refund of Rs 21,740 Crore

LIC obtained a refund of Rs 21,740.77 crore on February 15, 2024, from the Income Tax Department for the assessment years spanning from 2012-13 to 2019-20. While the total refund amounted to Rs 25,464.46 crore, Rs 21,740.77 crore was disbursed by the department in February. LIC is actively pursuing the outstanding balance with the department.(LIC Shares Increase by 2 percent Post PSU Obtains Rs 21,740cr Refund)

Stock Performance

In response to this development, LIC’s stock surged by 2% on February 19 afternoon on the National Stock Exchange. The stock was trading at Rs 1,056.55, exhibiting a 1.61% increase from the previous close. Over the past month, LIC’s shares have demonstrated a significant 17% rise, showcasing favorable investor sentiment.(LIC Shares Increase by 2 percent Post PSU Obtains Rs 21,740cr Refund)

Introduction of Amritbaal

Alongside the refund announcement, LIC also launched a fresh offering named Amritbaal on February 17. Amritbaal is a savings life insurance plan designed for parents seeking to establish a fund for their children’s higher education in the long term.

Key Features of Amritbaal

• Intended to create a substantial corpus for fulfilling the child’s educational requirements.
• Offers guaranteed additions at Rs 80 per thousand basic-sum assured annually, subject to policy continuity.
• Applicable for individuals aged between 30 days to 13 years, ensuring a long investment horizon.

Financial Performance

LIC revealed a standalone net profit of Rs 9,444 crore in Q3 FY24, marking a 49% increase from the corresponding quarter of the previous year. The net premium income in the third quarter surged by 5% year-on-year to Rs 1.17 lakh crore.

For the nine months ending in December 2023, LIC reported a net profit of Rs 26,913 crore, a rise from Rs 22,969 crore in the same period the previous fiscal year.

Technical Analysis

LIC’s relative strength index (RSI) stands at 62.8, indicating stability in the stock’s movement. With a beta of 0.6, the stock demonstrates low volatility throughout the year. Moreover, LIC’s shares are trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

In Conclusion

Recent events revolving around LIC, such as the substantial refund from the Income Tax Department and the unveiling of Amritbaal, have contributed to the insurance giant’s optimistic trajectory. With robust financial performance and innovative product offerings, LIC maintains its prominence in the insurance sector, garnering attention from investors and policyholders eyeing its future growth path.

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