Stock to buy: Anand Rathi bullish on this PSU share, sees 23% upside

Stock to buy: Brokerage firm Anand Rathi, in a new report, has expressed bullish momentum in PSU stock Life Insurance Corporation of India (LICI). The brokerage firm has recommended the target price of ₹975, with an upside potential up to 23 per cent.

LICI share price opened in green in Thursday's trading session, up less than a per cent. At 9:20 am, LICI share price was trading at ₹802 apiece, against previous close at ₹797.65.

The brokerage firm said that over the past 2–3 weeks, the stock has shown signs of stabilization, forming a sustained support base around the ₹750– ₹800 zone.

“Following a peak near the ₹1222 level, LICI underwent a sharp correction of nearly 500 points, translating to a substantial 41% drop in value. During this consolidation phase, an inverse Head & Shoulder pattern has formed, indicating potential reversal. Additionally, a bullish divergence on the Daily RSI strengthens the positive outlook,” the brokerage firm said in its report.

Recommending to buy for long-term, the brokerage firm further suggested investors to consider initiating long positions in the ₹780– ₹805 range, with an upside target of ₹975.

LIC share price movement

Indian public sector life insurance company's stock has failed to impress investors in terms of returns. LICI share price has fallen over 2.63 per cent since its listing in May 2022.

The stock has descended over 13.79 per cent in six months and 16.30 per cent in one year.

However, in short-term, the stock has given significant returns despite weak market sentiments. LICI shares have gained over 8 per cent in past one month and nearly 3.5 per cent in last five sessions.

In terms of year-to-date (YTD), the stock has plunged nearly 10.26 per cent, falling from ₹896.40 to current market level.

LIC stands as India’s leading insurance provider, holding a dominant market share of over 66.2% in new business premiums.

The company offers a diverse range of insurance solutions, including both participating and non-participating products such as unit-linked insurance plans, savings-oriented policies, term insurance, health coverage, as well as annuity and pension plans.

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