Share Market Update – LIC Share Price Target 2025

LIC Share Price Target 2025:- LIC, or Life Insurance Corporation of India, is the country’s largest and most trusted life insurance company. Founded in 1956, it has been a part of millions of Indian families, offering life cover and financial security. LIC provides a wide range of policies, including savings, protection, and pension plans. The company also has a strong presence in investments and holds major stakes in many top Indian companies. LIC Share Price on NSE as of 1 June 2025 is 952.05 INR.

LIC: Current Market Overview

• Open: 941.50
• High: 957.80
• Low: 934.15
• Mkt cap: 6.03LCr
• P/E ratio: 12.46
• Div yield: 1.26%
• 52-wk high: 1,222.00
• 52-wk low: 715.30

LIC Share Price Chart

LIC Share Price Target 2025 (Prediction)

LIC Shareholding Pattern

• Promoters: 96.5%
• FII: 0.1%
• DII: 1.28%
• Public: 2.12%

Key Factors Affecting LIC Share Price Growth

Here are five key factors influencing the growth of Life Insurance Corporation of India (LIC) and its share price target for 2025:

1. Strong Financial Performance
   In Q4 FY25, LIC reported a 38% year-on-year increase in net profit, reaching ₹19,039 crore. This robust performance has led to bullish recommendations from several brokerage firms, with target prices ranging from ₹990 to ₹1,260, reflecting investor confidence in LIC’s financial outlook.

2. Growth in Non-Participating Business
   LIC’s profitability has been bolstered by the growth in non-participating (non-par) insurance products, which offer higher margins compared to traditional offerings. This shift in product mix has contributed to improved profit margins and enhanced the company’s overall financial health.

3. Improved Value of New Business (VNB) Margins
   The company has seen growth in its Value of New Business (VNB) margins, indicating increased profitability from new policies sold. This improvement reflects LIC’s strategic focus on high-margin products and efficient distribution channels.

4. Stable Premium Growth
   For the full fiscal year 2025, LIC’s net premiums increased by 3% year-on-year to ₹4,90,000 crore, with renewal premiums growing by 2%. This steady premium growth underscores the company’s ability to maintain a strong customer base and generate consistent revenue streams.

5. Attractive Valuation and Dividend Payout
   Despite market fluctuations, LIC’s stock trades at a reasonable valuation, with a price-to-earnings multiple of 12x based on FY26 estimates. Additionally, the company has recommended a final dividend of ₹12 per share for FY25, demonstrating its commitment to delivering shareholder value.

Risks and Challenges for LIC Share Price

Here are 5 key risks and challenges that could affect LIC’s share price target for 2025:

1. Heavy Dependence on Traditional Insurance Products
   LIC still relies largely on participating and traditional life insurance products, which generally offer lower profit margins compared to private insurers who focus more on high-margin segments like ULIPs and non-par products.

2. Rising Competition from Private Players
   The Indian insurance sector is seeing fast growth in private companies that are more agile, technology-driven, and focused on customer experience. This competition could impact LIC’s market share and slow its growth.

3. Regulatory Uncertainty
   Any changes in government policies, tax rules, or IRDAI regulations can directly impact LIC’s product offerings, investment strategies, or profitability, posing a risk to its future earnings.

4. Investment Portfolio Volatility
   LIC has large investments in equity markets and government securities. Market fluctuations or economic instability can affect returns on these investments, which in turn could impact its financial performance.

5. Slower Shift Toward Digital Transformation
   While LIC is working on improving its digital capabilities, it still lags behind private insurers in offering a seamless digital experience. This may affect its ability to attract younger and tech-savvy customers.

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