Shares of Life Insurance Corporation (LIC) of India continued their downtrend for the sixth consecutive session on Tuesday. The inventory declined over 3% on Tuesday to hit its all-time low of Rs 751.00 apiece. The inventory is down 20.6% from its challenge value of Rs 949 throughout its public supply. Investors who purchased the insurer’s shares on the supply value have misplaced about Rs 1.2 trillion so far, confirmed Bloomberg information.
As of Tuesday’s shut, LIC’s market capitalisation stood at Rs 4.76 trillion. However, on the supply value of Rs 949, LIC’s market capitalisation was at Rs 6.02 trillion. The insurer, nevertheless, is at the moment the seventh most valued agency when it comes to market capitalisation, adopted by State Bank of India (SBI) with a market capitalisation of Rs 4.13 trillion.
According to consultants, lack of curiosity from international buyers in LIC, volatility within the general fairness markets and the poor outcomes launched within the final week have impacted the inventory efficiency. Speaking to FE, VK Vijayakumar, chief funding strategist, Geojit Financial Services, stated, “LIC’s issue price at 1.1 times embedded value was fair, however, the poor market sentiments and poor Q4FY22 results have impacted sentiments for the counter.”
In its maiden earnings after itemizing, LIC reported a 17.4% decline in its March quarter revenue to Rs 2,409.39 crore towards Rs 2,917.33 crore in the identical quarter final yr. However, the corporate administration said that the fourth quarter figures weren’t comparable with the numbers throughout the identical interval final yr, as the corporate had began together with quarterly numbers from September 2021.
Additionally, the insurer didn’t disclose its embedded worth together with its earnings final week — disappointing buyers. “The Q4FY22 results of LIC did not induce investors (especially institutional) to buy the stock and the fact that the determination of embedded value of LIC was delayed was not taken well by the investors,” Deepak Jasani, head of retail analysis, HDFC Securities, instructed FE. The administration had instructed reporters final week that the corporate is within the strategy of finalising the identical and would disclose as quickly because the train is accomplished.
Source: www.financialexpress.com”