Goldman Sachs has maintained a neutral call on Life Insurance Corporation (LIC) with a target price of ₹900 per share, indicating a moderate upside from its current market price (CMP) of ₹811.
The firm highlighted that LIC’s topline missed expectations, primarily due to a 38% year-on-year decline in its individual participating (par) business and weakness in the group business segment. Additionally, margins contracted as the impact of better product mix was more than offset by lower risk-free rates.
Analysts also pointed out negative operating leverage and new surrender payouts as key challenges impacting LIC’s financials. However, going forward, the management has reiterated its focus on non-participating (non-par) products, which is expected to drive margin improvements in the medium term.
LIC’s current market price stands at ₹811 per share, and with Goldman Sachs’ target price of ₹900, the stock has an upside potential of approximately 11% from current levels.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to do their own due diligence before making any investment decisions.)
