Is LIC Share A Good Buy At Current Levels?

Share of Life Insurance Corporation of India(LIC) is currently trading at around Rs.707 as against its IPO Price of Rs.949. People who have invested in this IPO have lot of questions and people who have not invested in this IPO but now want to invest in LIC share also asking lot of questions from the Share Market/Investment experts and Chartered Accountants. “Is LIC Share a good buy at current levels” is the most commonly asked question. Other questions which are being asked are listed below:

• What is LIC share target?
• What is the true value of LIC shares?
• What is the face value of LIC share?
• Is investing in LIC a good option?
• Is it advisable to hold LIC shares?
• Can LIC shares go up?
• Will the LIC stock go up?
• Will LIC shares fall?
• Will LIC share give dividend?
• Why is LIC share falling?
• Is LIC Share A Good Buy At Current Levels?

In this article we will discuss about the possible answers to all the questions being raised by existing investors as well as prospective investors. All the questions raised above are being answered in the following paragraphs:

• Looking at the IPO price, listing price and its current market price, we can say that the share will touch the level of around Rs.1000 within next 6 months and we can see the share price going up to around Rs.1200 by the end of 2023.

• Face Value of LIC share is Rs.10 while its Book Value is around Rs.41. P/E Ratio of LIC stock is around 81 and the EPS is around 9.

• Looking at the fundamentals and near monopoly position of the LIC in life Insurance sector, it is always advisable to invest in the LIC share. The share is a good buy at the current levels and the existing investors who purchased this share at higher price, should hold this share for making huge profit in the medium to long term.

• As already stated above, the share price of LIC may touch the level of Rs.1000 within next 6 months and another level of Rs.1200 by the end of 2023. Any further fall in the share price of LIC will be only temporary and an opportunity to invest further in the share.

• LIC is a dividend paying Government Company  and has declared dividend after the allotment of IPO

• It is true that investors have witnessed a fall in the share price of LIC from its allotment price of Rs.949 to Rs.707. But this fall in the share price does not reflect on the strong fundamentals and future business prospects of the company. Share Price can fluctuate in based on the several temporary factors and market sentiments, irrespective of its fundamentals. However, such fall in the share price is temporary and the Share is definitely will rise and will provide huge gains to its loyal long term investors.

Disclaimer : Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the market expectations from the Budget 2023. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general guidance purpose only. Moneyinsight does not offer investment advice and does not encourage any action based on its content.

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