LIC Shares Surge Ahead of 1:1 Bonus Issue: Should Investors Buy?
LIC shares gain 6% in two sessions. Should you buy ahead of the 1:1 bonus issue?
Image: The Economic Times
Shares of Life Insurance Corporation of India (LIC) rose 6% over two sessions, reaching an intraday high of ₹813, following the announcement of a 1:1 bonus issue. The company reported a consolidated net profit of ₹23,467 crore for Q4 FY26, marking a 23% increase year-on-year.
- 01LIC's consolidated net profit for Q4 FY26 reached ₹23,467 crore, a 23% increase from the previous year.
- 02The company will issue one bonus share for every existing share, with May 29 set as the record date.
- 03Citigroup maintains a 'Buy' rating with a target price of ₹1,475, suggesting an upside of over 81%.
- 04Bernstein gives a 'Market Perform' rating with a target price of ₹900, indicating an 11% upside.
- 05JM Financial also holds a 'Buy' rating, raising its target price to ₹960, predicting an 18% upside.
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Shares of Life Insurance Corporation of India (LIC) have seen a notable increase, gaining 6% over two sessions to reach an intraday high of ₹813 on the Bombay Stock Exchange. This rise follows the company's announcement of a 1:1 bonus issue, where shareholders will receive one additional share for each existing share held, with May 29 designated as the record date for eligibility. In its fourth quarter of FY26, LIC reported a consolidated net profit of ₹23,467 crore, reflecting a 23% year-on-year growth, while net premium income rose by 12% to ₹1.65 lakh crore. Various brokerages have weighed in on the stock; Citigroup maintains a 'Buy' rating with a target price of ₹1,475, citing strong performance in non-par products and favorable yield curves. Bernstein has a 'Market Perform' rating with a target of ₹900, while JM Financial has raised its target price to ₹960, emphasizing LIC's diversifying product mix and improving margins. Despite a recent uptick, the stock is down 7% over the last six months.
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The announcement of the bonus issue and positive financial results could influence investor sentiment and stock performance in the Indian market.
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