LIC Shares Down 15% in Year: Can India's Biggest Insurer Regain Lost Glory Since IPO Launch? Experts Decode

LIC Share Price Today: Life Insurance Corporation of India (LIC), which debuted in 2022 as one of India's biggest and most celebrated IPOs, had attracted massive investor interest at the time. Fast forward to September 12, 2025, and LIC shares are still struggling to regain their IPO issue price. LIC stock has slipped nearly 15% over the past year, raising concerns among shareholders about its recovery prospects.

LIC share price was trading 0.19% lower at Rs 875.15 per share on BSE with a market capitalisation of Rs 5,53,532.17 crore at 2:00 pm on Friday. The stock had touched an intraday low of Rs 873.40 per share and an intraday high of Rs 878.60 per share today.

The life insurance stock has declined around 15.15% in one year on BSE. LIC IPO issue price was finalised at Rs 949 per share. LIC stock had crossed the IPO price in 2024, when it touched its 52-week high mark of Rs 1,048.40 per share on 26 September 2024. However, the stock reversed its gains afterwards.

"LIC(The Life Insurance Corporation of India)shares have faced significant underperformance, with a one-year decline of approximately 13%, falling behind both the broader market and its private sector peers. Additionally, the stock has faced a post-IPO valuation recalibration, trading at a deep discount compared to its private-sector peers," noted Narender Singh, Investment Manager on smallcase and Founder at Growth Investing.

What Factors Are Dragging LIC Stock Performance?

Decline in value of new business (VNB), underperformance of equity holdings in portfolio, weak investors confidence, and shifts in solvency rules, product composition, and growing digital competition, are some of the key factors behind the weak performance of LIC share price, explained Narender Singh.

LIC reported a 5.1% of annual decline in its annualised premium equivalent (APE). According to Emkay Research, LIC is expected to see a 6-7% of growth in APE in the second half of the year 2025. But the main question is, will a potential improvement in revenue translate into revival of LIC stock growth?

Will LIC Regain Its IPO Valuation?

LIC share price is already on track of revival as it has surged significantly from its 52-week lowest mark, but the future prospect depends on multiple factors, believes Narender Singh.

"The stock has already bounced back by around 34% from its 52-week low of approximately ₹715, supported by steady growth in assets under management (AUM), healthier policy sales, and improvement in the value of new business (VNB). The pace of recovery will hinge on LIC's ability to sustain premium growth, maintain profit margins, and benefit from supportive market conditions," he explained.

LIC Share Price Outlook, Recommendation

Despite LIC's underperformance, experts are bullish on the stock's future prospects because of its strong fundamentals and positive growth outlook.

"The company's underlying business fundamentals are strong, as evidenced by a growth in consolidated net profit and total premium income in Q1 FY26. LIC is also strategically pivoting toward higher-margin non-participating products, which has improved its value of new business margin.LIC, trading at ₹850-₹930, could cross its IPO price of ₹949 and target ₹1,000+ by late 2025 if growth and macro conditions hold steady. A rebound in the second half of FY26 will be crucial for sustaining its recovery," noted Singh defining LIC growth outlook as 'cautiously optimistic'

Brokerage Emkay Research has also given a 'Add' rating for LIC stock with a target price of Rs 1,100. It indicates a 25% upside in its valuation in long-term.

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