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LIC’s Financial Triumph: Unveiling Q3 Results, Market Surge, and Dividend Prospects in 2024

5th February, 2024| By Business Desk
LIC Central Office
LIC Central Office | Credit: Wikimedia Commons
  • LIC is set to announce its Q3 financial results on February 8, 2024, and may declare an interim dividend for FY 2023-24, as indicated in a recent stock exchange filing.
  • LIC’s shares reached a 52-week high of ₹1,027.95 on Monday, closing 5.90% higher at ₹1000.35 per share, reflecting a significant market valuation surpassing ₹6 lakh crore.
  • The surge in LIC’s share value over the past six months amounted to 51.90%, contributing to a market capitalization of ₹6,32,721.15 crore and positioning it as the most-valued PSU firm in India.
  • Despite initial skepticism surrounding its IPO, LIC’s stock has demonstrated strong performance in the last 5-6 months, dispelling earlier concerns raised by market experts.
  • The upcoming Board meeting on February 8 will also consider the possibility of declaring an interim dividend for FY 2023-24, following LIC’s history of dividend declarations, with the current dividend yield standing at 0.30%.

Life Insurance Corporation of India (LIC) is poised to unveil its third-quarter financial results and potentially declare an interim dividend for the fiscal year 2023-24 on February 8, as communicated through a stock exchange filing on Monday. The upcoming meeting of the Board of Directors, scheduled for February 8, 2024, will deliberate on the approval of the Unaudited Financial Results (Standalone and Consolidated) for the quarter and the nine-month period concluding on December 31, 2023. Additionally, the Board may contemplate a proposal for the declaration of an interim dividend for the aforementioned financial year, according to the filing submitted by the company to the Bombay Stock Exchange (BSE).

As of Monday, LIC’s shares achieved a notable milestone by reaching a 52-week high of ₹1,027.95 per share on the BSE. The closing value of the company’s scrip marked a 5.90% increase, settling at ₹1000.35 per share on the same day. Over the past six months, LIC’s share value exhibited a robust growth of 51.90%. This upward trajectory reached a pinnacle on Monday as the company’s market valuation surpassed ₹6 lakh crore, propelled by a 6% surge in its shares, breaching the ₹1,000 mark for the first time.

At the National Stock Exchange (NSE), LIC shares experienced a surge of 5.64%, closing at ₹998.85, and reached an intraday high of ₹1,028, reflecting a 52-week peak. The sudden market upswing resulted in the company’s market capitalization soaring to ₹6,32,721.15 crore. Noteworthy is the fact that LIC’s stock value demonstrated an improvement of 16.54% year-to-date and an impressive 66.98% over the last year.

In December, LIC achieved the status of being the country’s most-valued Public Sector Undertaking (PSU) firm by market valuation, surpassing the State Bank of India (SBI). However, it is essential to acknowledge that LIC is positioned below private entities such as Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, and Infosys in terms of overall market capitalization.

An interesting aspect of LIC’s recent performance is the reversal of perceptions surrounding its Initial Public Offering (IPO), which took place a year ago. Initially criticized by market experts as a wealth destructer, the company’s stock has witnessed positive momentum over the last 5-6 months. The central government divested its stake in LIC through the IPO, selling over 22.13 crore shares, equivalent to a 3.5% stake.

Shifting the focus to LIC’s dividend history, the company has declared dividends twice since its listing on May 17, 2022. In 2023, an announced dividend of Rs. 3 per share with a face value of Rs. 10 was made, following a dividend of Rs. 1.5 per share in 2022. Calculated against the current share price of Rs. 1000.35, LIC’s dividend yield stands at 0.30%.

In summary, LIC is gearing up for a crucial Board meeting on February 8, 2024, where the financial results for Q3 and the nine-month period ending on December 31, 2023, will be scrutinized. The possibility of an interim dividend declaration for the fiscal year 2023-24 is also on the agenda. The recent surge in LIC’s share value, crossing the ₹1,000 mark and achieving a 52-week high, adds a layer of significance to the company’s financial landscape. Despite initial skepticism around its IPO, LIC’s stock has defied expectations, contributing to its position as a major player in the Indian financial market.