Kotak Institutional Equities has retained its ‘buy’ rating on Life Insurance Corporation of India (LIC) stock, and has raised the target price to Rs 1,000 from Rs 975 earlier. The insurance company is on track for steady value of new business growth, with the calculated VNB margin expanding to 19.2% in Q4 from 14.6% in the nine months of FY23, despite a 7% YoY decline in APE. LIC aims to focus on higher-margin products and achieve steady VNB growth. Management expects to cede market share to the private sector on its high base, assuming 7% APE growth.
