LIC share price rises 8% post Q4 results, dividend announcement: Should you Buy or Sell the stock?

Stock Market Today: LIC share price rises almost 8% in the morning trades on Wednesday post Q4 results, dividend announcement that were made after the market hours on Tuesday: Should you Buy or Sell the stock?

LIC Q4 Results details

Life Insurance Corporation of India announced the results of its January–March quarter on Tuesday, May 27, 2025. In comparison to ₹13,763 crore in the same quarter last year, the company's net profit for the fourth quarter of the fiscal year 2024–25 increased by 38% to ₹19,013 crore.

However, India's largest insurance company's net premium income (income from core operations) dropped 3 per cent to ₹1,47,586 crore in the fourth quarter of the 2025-26 fiscal year, compared year-on-year (YoY) with ₹1,52,293 crore in the same quarter of the previous financial year.

According to the latest filing, the company's market share in the insurance industry stood at 57.05 per cent as of Tuesday, 27 May 2025.

Analyst Views

In order to achieve growth momentum, LIC is concentrating on expanding its product offerings, increasing ticket sizes, shifting the product mix toward non-par, expanding its agency channels, and increasing the contribution from bancassurance and alternative channels. LIC continues to hold its top spot in the industry, as per analysts

"Par" is an acronym for participation in the insurance industry, and it refers to life insurance plans that let policyholders take a cut of the business's earnings.

Improvement in rider attachment, along with an increase in contribution from higher margin products, will boost VNB margin as per Motilal Oswal Financial Services Ltd . They have cut our VNB margin estimates by 50bp each for FY26 and FY 27, factoring in FY25 performance. MOFLS reiterates its Buy ratings with a target price of ₹1,050 (premised on 0.6 time FY27 estimated Enterprise Value )

Value of New Business is what VNB stands for. It's a crucial financial indicator that assesses how profitable new business sales for insurers are. The present value of future profits anticipated from newly drafted policies during a given time period is represented by VNB.

Centrum Broking Ltd said that LIC’s APE growth remained weak in Q4FY25 (flattish in FY25) but management. expects the growth to rebound in FY26. APE stands for Annual Premium Equivalent

The focus as per Centrum continues to remain on profitable products with share of non-par products in the individual APE increasing in FY25. Centrum has increased its VNB margin estimates for both, FY26 and FY27 with VNB expected to clock double digit CAGR (compounded annual growth) over FY25-FY27. The focus remains on the agency channel growth though the banca and alternate channel registered superior growth, the brokerage added.

The stock as per Centrum is currently trading at 0.6 times FY27 estimated Price to Enterprise Value. They continue to value the company at an unchanged 0.8 times (60% discount to listed peers averages . However, owing to downward revision in the Enterprise Value estimates they have cut their target price to ₹1,180 (compared to Rs1,215 earlier), though maintaining BUY ratings

LIC Dividend details 

Subject to shareholder approval, the Board of Directors of LIC have recommended a final dividend of Rs. 12 per share for the fiscal year 2024–2025.

LIC share price movement

LIC share price, opened at ₹895.70 on the BSE on Wednesday and was almost 3% higher at the time of opening compared to the previous day's closing price of ₹871.05.

During the day, LIC share price lost further to hit an intraday high of ₹948, translating into 8.8% rise during the intraday trades.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.