LIC Share Price Target 2022, 2023, 2024, 2025, 2030

LIC Share Price Target 2022, 2023, 2024, 2025, and 2030: Hi! I hope everyone is fine there and achieving some highs in their respective field.

In this article, we will provide you with deep insights into India’s biggest Insurance company, Life Insurance Corporation of India (LIC). We will give you the right knowledge about whether the investment in this company’s stock is a thing of profit or loss.

Apart from all of the above, we will try to predict the target for LIC for the upcoming years. So, stay with us to find out your answers.

LIC Share Price Target 2022, 2023, 2024, 2025, and 2030

LIC share price target 2025 2030

The Life insurance corporation of India was established on 1st September 1956. The Parliament of India passed the Life Insurance of India Act which nationalized the insurance industry in the country.

Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.

Life Insurance Corporation of India is an Indian statutory insurance and investment corporation. The company is under the ownership of the Government of India. LIC is headquartered in the city of Mumbai, India.

Mr. M R Kumar is the chairperson of LIC. As per the latest data approx. 1,14,000 employees are working in LIC India. In May 2022 the company debuted on the Indian stock market. The Government of India sold approx a 3.5% stake to the public through an IPO.

LIC Share Price Target 2022, 2023, 2024, 2025, 2030,2040

Related :

LIC Share Price Target 2022

The current market cap of LIC is stood more than ₹4,25,000 crore. That means the company falls in the Large-cap category.

The current stock price is in the range of ₹665-₹690. LIC Stock is trading at P/E OF 105 but sector P/E is just 19.49. As per the P/E Ratio valuation, the share of LIC is trading at a premium valuation.

LIC is a giant in the Insurance sector, and there is no doubt about it that the company will do well in the future. LIC Share Price Target 2022 will be as follows:

LIC Share Price Target 2022
First Target ₹850
Second Target ₹879

LIC Share Price Target 2023

LIC is a market leader in the Indian life insurance industry with a strong distribution network and diversified product suite. The embedded value for LIC as of September 30, 2021, was at ₹5.396 lakh crore.

Its market shares in the Indian life insurance industry for FY21 was 64.1% in terms of gross written premium (GWP), 66.2% in terms of new business premium (NBP), 74.6% in terms of the number of individual policies issued, and 81.1% in terms of the number of group policies issued.

LIC Share Price Target 2023
First Target ₹925
Second Target ₹940

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LIC Share Price Target 2024

LIC is a very good fundamentally strong company. But continuing to lose market share to private players is a big concern.

To overcome this situation LIC needs to do aggressive marketing of its products. With vast capital, LIC India can beat any company in the business. But all it needs is the right direction.

LIC Share Price Target 2024
First Target ₹1200
Second Target ₹1265

LIC Share Price Target 2025

LIC India has the largest individual agent network among life insurance entities in India, comprising approximately 1.33 million individual agents end of December 2021.

The company has 2,048 branch offices and 1,559 satellite offices in India, covering 91% of all districts in India.

On account of consolidation, with respect to branch expansion and other cost rationalization, the overall cost is gradually declining across the industry.

However, owing to high expense and commission costs in relation to business, the total cost ratio of private players has remained high compared to LIC.

The following are the LIC Share Price Target 2025:

LIC Share Price Target 2025
First Target ₹1470
Second Target ₹1505

LIC Share Price Target 2030

Still, the insurance sector is under penetration in India. There is no doubt about that actual boom in the insurance industry yet to come.

When per capita income will rise, people will start to buy insurance. Also, demand for Insurance products increased corona pandemic.

LIC Share Price Target 2030
First Target ₹2200
Second Target ₹2260

LIC Share Price Target 2040

Educating population in the country is increasing day by day. They will be much more aware of life insurance.

Today the Basic needs include four items “Roti, Kapda, Makan, Insurance”. All these possibilities may unlock value for the Insurance sector.

LIC Share Price Target 2040
First Target ₹6400
Second Target ₹6600

Business Model of LIC India

The corporation is mainly involved in the Insurance sector. Life Insurance Corporation is the biggest insurance provider company in India. The company has a market share of above 66.2% in new business premium.

Moreover, LIC India has a 71.8% market share in terms of the number of individual policies issued and 88.8% market share in terms of the number of group policies issued for the 9 months ended December 31, 2021.

LIC offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.

As per the latest data, it has a total AUM (Asset under management) of ₹39 lakh crore.

LIC India operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices. The company operates globally in Fiji, Bangladesh, Nepal, Mauritius, Singapore, Sri Lanka, UAE, Bahrain, Kuwait, Qatar, and the United Kingdom.

Products of the company :

  1. Participating insurance products
  2. Non-participating products
    (a) savings insurance products; (b) term insurance products; (c) health insurance
    products; (d) annuity and pension products; and (e) unit-linked insurance products.

Strengths of LIC India

Financial Strengths :

  • Excellent ROE 82.32% and RoCE 82.50%.
  • LIC is a Cash Rich company.
  • NBP (new business profit margin) on a consolidated basis increased at a CAGR of 13.49% from Fiscal 2019 to Fiscal 2021.
  • Expense ratios on a standalone basis are lower than that of the top five private players in India as a whole.

Other Strengths :

  • LIC India has over 13.5 lakh agents who play bringing most of the new business. The company plans offer ‘fixed returns’ along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
  • The high trust of customers. LIC is synonymous with insurance in India.
  • The company manages an asset of ₹39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds. They own 4% of all listed stocks in India and more government bonds than the RBI.
  • Fifth largest life insurer globally by GWP and the largest player in the underpenetrated Indian life insurance sector.
  • Presence across India through an omni-channel distribution network with unparalleled agency force.
  • LIC has a highly experienced and qualified management team, a distinguished Board and a strong corporate governance framework.

Weaknesses of LIC India

  • Last 5 years sales growth of the company is just 2.96%, which is below par.
  • Over the last 5 years, profit growth remained just 2.87%.
  • LIC is receiving high competition from private players like SBI Life Insurance Company Ltd, HDFC Standard Life Insurance Co Ltd, and ICICI Prudential Life Insurance Co Ltd.
  • A significant proportion of total new business premiums are generated by participating products at 69.7% and single premium products at 82.5%, and any significant regulatory changes or market developments that adversely affect sales of these products.
  • The investment portfolio is subject to credit, concentration, and liquidity risks, which could have a material adverse effect on the company’s financial condition.

Competitors of LIC

  • SBI Life Insurance Company Ltd,
  • HDFC Standard Life Insurance Co Ltd,
  • ICICI Prudential Life Insurance Co Ltd.
  • TATA AII Insurance Co Ltd.
  • MAX Life Insurance Co Ltd.
  • Kotak Life Insurance

Related :

LIC Share Price Target 2022, 2023, 2024, 2025, 2030

Target on LIC for Long Term
First Target (2022) ₹850
Second Target ₹879
First Target (2023) ₹925
Second Target ₹940
First Target (2024) ₹1200
Second Target ₹1265
First Target (2025) ₹1470
Second Target ₹1505
First Target (2030) ₹2200
Second Target ₹2260

Final Thoughts

The insurance industry is an under-penetrated industry in India. This will grow very fast in the future. LIC itself is a Brand and is trusted by people.

The private insurance players are working very aggressively to capture the market share. But LIC due to lack of marketing may lose its market share. Also, the population of educated people is increasing, so they will don’t hesitate to buy Insurance from a private company.

So, personally, I am not so bullish on LIC. I may be wrong, it’s purely my opinion.

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Disclaimer – In this post, we have just evaluated the company also we are not a SEBI registered advisor. We have not provided any investment advice on this stock. Before doing any investment please research yourself or take the advice of your financial advisor.

FAQ

  1. Is LIC share a good buy?

    The insurance sector is still underpenetrated. The experts are believing that the Insurance sector may grow with a good CAGR growth in the future.

  2. Who is the Owner of LIC?

    The Government of India is the owner of LIC.

  3. Is LIC a good company?

    ROE and ROCE are above 80, debt-free company, strong brand image makes LIC a good company.

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