LIC shares rise 1.8% as analysts upgrade targets after record VNB margin beat
The stock reached an intraday high of ₹396.85 after the state-owned insurer reported improved Q1FY27 results on Thursday
Life Insurance Corporation of India (LIC) shares rose 1.8% on the NSE, closing at ₹394.00 on Friday after posting record results for Q1FY27. Analysts upgraded their targets, with Motilal Oswal raising its Buy rating to ₹480 and Jefferies to ₹530, citing significant improvements in Value of New Business (VNB) margins. Both brokerages noted that LIC has narrowed the margin gap with private sector peers to 200-300 basis points.
JM Financial maintained a Buy at ₹480, attributing margin expansion to product mix benefits and assumption changes, while Macquarie set a target of ₹550 and Bernstein a ₹500 target, both with positive outlooks. LIC reported a 61% increase in VNB to ₹31 billion and a 23% rise in profit after tax to ₹134.9 billion, indicating solid financial performance.
Despite the gains, the stock remains down about 10.96% over the past year compared to an NSE 500 gain of 4.49%. Analysts see the risk-reward as favorable, but APE growth recovery and interest rates remain key factors to watch.
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