JPMorgan has upgraded its rating on Life Insurance Corporation (LIC) from ‘Underweight’ to ‘Overweight’ and raised the target price to ₹1,075 from ₹790, suggesting a potential 17% upside from the current market price (CMP) of ₹920. Key insights from JPMorgan’s analysis include:
- Valuable New Business (VNB) Growth: The double upgrade is driven by strong VNB growth, attributed to an enhanced product mix, which is expected to provide sustainable growth.
- Revised Forecasts: JPMorgan has revised its VNB forecasts for FY25 and FY26, increasing them by 9% and 11%, respectively.
- Outlook on Growth Drivers: The positive impact of LIC’s improved product benefits and lower bond yields continues to outweigh potential negative impacts, supporting sustainable growth in the near term.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
