Motilal Oswal Financial Services has reiterated its Buy rating on Life Insurance Corporation of India (LIC) while revising its target price to ₹1,080 from ₹1,150. At the current market price of ₹886.40, the new target implies an upside of approximately 22% in LIC shares.
The brokerage noted that LIC’s Annualized Premium Equivalent (APE) and Value of New Business (VNB) for the first quarter were in line with expectations. The VNB margin expanded to 15.4%, driven by a favourable product mix shift toward non-participating (non-par) products.
According to the management commentary, premium growth is likely to recover in the second half of FY26. The company continues to place strategic focus on absolute VNB growth.
FY26 and FY27 estimates have been left unchanged by the brokerage, maintaining confidence in LIC’s medium-term growth trajectory.
Disclaimer: The views and recommendations expressed by Motilal Oswal are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
