LIC Share Price Jumps Nearly 5% After Q1 Results: Analysts Say It Could Jump Another 55%; Should You Buy Now?

Shares of Life Insurance Corporation of India (LIC) witnessed a strong rally on Friday, August 8, 2025, gaining 4.6% or as much as 5% intraday to hit a high of Rs 927 per share on the Bombay Stock Exchange (BSE). The upward momentum came a day after the company announced its financial results for the quarter ended June 2025 (Q1 FY26).

LIC Share Price Today After Q1 Results Announcement

At 10.15 AM on Friday, LIC's stock was trading at Rs 916.30 per share, up 3.54% from the previous close. In contrast, the broader market was subdued, with the BSE Sensex down 0.60% at 80,137.85, fell by 483.44 points at the same time. The positive sentiment around LIC's stock reflected investor optimism following the company's better-than-expected quarterly performance.

LIC Q1 Results: Steady Growth in Profit and Premium

For the June 2025 quarter, LIC reported a net profit of Rs 10,986 crore, marking a 5% year-on-year (YoY) increase from Rs 10,461 crore in the same period last year. The company also recorded a 5% YoY rise in its New Business Premium (NBP), indicating consistent growth in its core operations.

Furthermore, LIC's Value of New Business (VNB) margins expanded by more than 150 basis points compared to the year-ago quarter, showcasing improvement in the profitability of its new business segment.

Is it Good Time to Buy LIC Share? Analysts Remain Bullish on LIC Stocks Post Results

Following the Q1 earnings announcement, analysts tracking the stock turned increasingly positive. According to CNBC-TV18 report, out of 22 analysts covering LIC, 17 recommended a "buy" rating, while four suggested a "hold," and only one issued a "sell" call. Based on their estimates, LIC shares have the potential to climb as much as 55% from current levels, supported by strong fundamentals and valuation comfort.

A key factor highlighted by market observers is the low free float of LIC's shares in the market. The government currently holds a 96.5% stake in the company, having offloaded only 3.5% during LIC's initial public offering (IPO) in May 2022. The limited public float tends to contribute to reduced supply and increased price sensitivity on the exchange.

LIC Stock Price Target: Brokerages Raise Price Targets After Q1 Update

Several brokerages updated their outlook on LIC following the Q1 results. Macquarie maintained an "outperform" rating on the stock, setting a price target of Rs 1,215, which is close to LIC's all-time high of Rs 1,222. The brokerage firm noted that the improvement in cost ratios played a key role in boosting VNB margins. Despite a relatively moderate Compounded Annual Growth Rate (CAGR) for VNB, Macquarie believes LIC's valuation remains attractive.

Citi offered the most aggressive target among brokerages, assigning a "buy" rating with a price target of Rs 1,370-the highest estimate currently on the street for LIC. Citi analysts emphasized the company's progress on several fronts, improved activation rates among agents, an increase in the average sum assured and ticket size and a push to expand the agent base with younger talent.

However, they also cautioned that stabilization in LIC's market share within the individual insurance business remains a key monitorable factor going forward.

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