LIC shares flat ahead of Q3 earnings; AUM to grow 30 pc YoY

LIC shares flat ahead of Q3 earnings; AUM to grow 30 pc YoY

Shares of Life Insurance Corporation LIC of India were trading on a flat note ahead of the firm's Q 3 earnings set to be announced today. The LIC stock was up 0.60 per cent against the previous close of Rs 610.10 on the BSE. Shares of LIC opened higher at 614.95. On BSE, the market cap of LIC rose to 3.88 lakh crore. The firm's total changed hands of 0.31 lakh shares, which was a turnover of 1.94 crore. The stock has gained for the last 4 days.

The stock is down 13% in a month. The stock was at a 52 week high of Rs 920 on May 17, 2022 and a 52 week low of Rs 582.45 on February 1, 2023.

In terms of technicals, the relative strength index RSI of RIL stands at 29.2, signaling it is trading in the oversold territory. LIC has a price to equity ratio of 95.44. LIC shares are trading higher than the 5 day moving averages but are lower than 20 day, 50 day, 100 day and 200 day moving averages.

In the second quarter of the current fiscal, LIC reported a net profit of Rs 15,952 crore for the quarter ended September, which is sharply higher than Rs 1,433 crore a year ago. Net premium income for the quarter increased 26.6% YoY to 1.32 lakh crore. The net income from investments went up by 10% YoY to Rs 84,104 crore.

Emkay Global expects LIC to report a profit of Rs 4,580. The year-ago quarter saw 80 crore against 234.90 crore. APE annual premium equivalent is Rs 13683 crore, and the value of new business VNB is 1,965. The VNB's margin was 14.4 per cent, and 20 crore and VNB's margin was at 14.4 per cent.

We expect APE to grow 30 per cent YoY in 9 MFY 23 driven by 19 per cent YoY growth for Q 3 FY 23 and 37 per cent YoY growth for H 1 FY 23. We expect LIC to deliver VNB margin in line with H 1 FY 23 margins, at 14.5 per cent for 9 MFY 23. With the change to the accounting policy, to transfer surplus funds from the non-par fund to the shareholders fund, we expect LIC to report PAT of Rs 4,580 crore in Q 3 FY 23. The brokerage said that AUM would grow by 10 per cent YoY to Rs 44,22, 600 crore for 9 MFY 23.