Life Insurance Corporation share price in focus: Shares of Life Insurance Corporation (LIC), a leading insurance and investment corporation in India, have made a strong comeback in recent months, driven by improving technicals, market sentiment, and optimistic views from the top brokerages, propelling the stock to record one of the biggest turnarounds since its listing.
LIC shares began their one-way rally in March after hitting a 52-week low of ₹715.30, gaining 34% to date. This rebound followed a period of sustained selling pressure between August 2024 and February 2025, during which the stock lost 40% of its value. However, LIC has managed to recover most of those losses within just four months.
The rebound has not only helped shareholders recover earlier losses but also lifted the company’s market capitalisation, which jumped by ₹2 lakh crore to reclaim the ₹6 lakh crore mark in mid-June after a gap of seven months.
Although the stock picked up momentum in March, the real acceleration came after the release of March quarter results in late May, buoyed by strong VNB and AUM figures and further supported by robust policy sales—including a record-breaking 588,107 policies sold within 24 hours on January 20, 2025, earning a Guinness World Record.
The strong performance led analysts to maintain their optimistic outlook on the company’s growth prospects, with ICICI Securities expecting the stock to reach ₹1,040, while Geojit Financial Services projects it to rise to ₹1,088. Both have ‘buy’ ratings on the stock.
Meanwhile, the stock remains tightly held, with 96.5% ownership still with the government. Retail shareholders held a 2.1% stake in the company at the end of the March 2025 quarter.
The company is still not in compliance with SEBI’s minimum public shareholding (MPS) norm, which requires promoter holding to be brought down to 75%. Market participants cite a regulatory clause as the reason for the delay, Section 19(a) of the Securities Contracts (Regulation) Rules, 1957, which allows the government to extend the compliance deadline for listed PSUs.
In July 2024, the government extended the deadline for PSUs to become MPS-compliant by two years, pushing it to August 2026. The extension was necessitated as the earlier deadline was set to end on August 1, 2024.
LIC shares: Can rally sustain from here?
Anshul Jain, Head of Research at Lakshmishree Investments, said, “LIC is shaping up a classic cup and handle pattern that’s been developing for 127 days, backed by steady accumulation on daily charts, a clear sign of underlying strength. A decisive breakout above 980 could unlock fresh momentum, pushing the stock swiftly towards the 1,100 mark. Traders should keep an eye on volume confirmation during the breakout to gauge conviction. This setup shows that LIC might be ready for a strong leg up if market conditions hold steady.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
