LIC overtakes SBI in market cap: A Testament to its robust performance | Fusion - WeRIndia

In a noteworthy development, the Life Insurance Corporation of India (LIC) has reclaimed its position as the most valued public sector undertaking, surpassing the market capitalization of the State Bank of India (SBI).

Currently, LIC holds a market cap of ₹5.64 lakh crores, edging past SBI’s ₹5.63 lakh crores.

A 1.5 per cent decline has been witnessed in SBI stock to ₹624. At the same time, LIC exhibited resilience, trading at ₹896 with a 0.2 per cent increase on the BSE.

This achievement comes amidst a 1.02 per cent loss in the benchmark BSE Sensex, settling at 72,386 points.

LIC’s stellar performance in 2023, with a gain of over 22%, continued into 2024, witnessing an additional surge of 7.5%.

In contrast, SBI made modest progress last year, advancing nearly 5%, but faced a loss of over 1% this year.

December marked a significant turning point for LIC, with a remarkable gain of 22.66%, and the positive trend persisted into January, marking a gain of over 10%.

Notably, the stock is currently only about 4% below its IPO price.

Analysts consistently favour LIC, emphasizing its attractive valuation.

The company’s Q1 results showcased a consistent increase in market share, underscoring its dominance despite its substantial size.

LIC’s anticipated regulatory changes in the participating (PAR) and non-participating (Non-PAR) business segments are expected to bolster its long-term profitability.

The PAR segment, allowing policyholders to share in company profits, is viewed as value-adding.

An expansion in the non-PAR segment is believed to enhance LIC’s overall margins.

In H1FY24, LIC reported a net profit of ₹17,469 crores, demonstrating growth from ₹16,635 crores in the corresponding period of the previous year.

The new business premium (individual) for H1FY24 saw a 2.65% surge to ₹25,184 crore, reflecting the premium due in the initial policy year.

LIC’s consistent growth, strategic positioning, and favourable market reception underline its prominence in the financial landscape, reinforcing investor confidence in its trajectory of success.

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