2 Large Cap Insurance Stocks To "Buy" & "Hold" As Shares Can Rally Up To 30%, Says Geojit

Geojit in its recent report on LIC of India Limited has assigned "Buy" call to the stock, meanwhile, in its report on HDFC Life Insurance Company Limited, it has assigned a "Hold" call to the stock. The brokerage says "Buy" LIC with a target price of Rs 765 apiece and "Hold" to HDFC Life with a target price of Rs 520 apiece. Check Below to know more:

HDFC Life - Stock Outlook, CMP, Potential Upside and Returns

The stock with the "Hold" call and the given target price of Rs 520 apiece is likely to give a return of up to 8%. Its current market price (CMP) on NSE is Rs 482.85 apiece. Its 52-week high is Rs 620.60 apiece and 52-week low is Rs 473.70 apiece, respectively.

It has given 4.24% negative return in 1 week, 18.1% in 1 month and 15.67% in 3 months, respectively. It fell 9.4% in 1 year and 13.9% in 3 years, respectively. It gave 2.99% positive return in 5 years.

 

HDFC Life - Brokerage's Views

Geojit said," Increased growth drivers, volume and aggressive selling across product mix could help its top line in the future. However, the recent unfavourable budget proposals, including tax on high-value insurance policies, have reduced our expectations. Hence, we downgrade our rating to HOLD, with a revised target price of Rs. 520 based on 2.2x FY25E embedded value (EV) per share."

 

LIC - Stock Outlook, CMP, Potential Upside and Returns

The stock of LIC with "Buy" call and the given target price of Rs 765 apiece is likely to give a return of 31%. Its current market price (CMP) on NSE is Rs 584.60 apiece. Its 52-week low is Rs 582.35 apiece and 52-week high is Rs 918.95 apiece, respectively.

The stock was listed on 17 May 2022. Since its listing, its share value has fallen 33.21%. It has fallen 3% in 1 week, 16.74% in 1 month and 6.35% in 3 months, respectively.

 

LIC - Brokerage's Views

According to Geojit, Company is focused on building a consistent and profitable portfolio mix, especially inclined towards non-par business. Market share for first-year premium increased 3.98% YoY for 9MFY23. The management is confident of LIC's business remaining robust and plans to expand its market share. "We reiterate our BUY rating on the stock with a lowered, rolled forward target price of Rs. 765, based on 0.7x FY25E EV per share," the brokerage has said.

Disclaimer

The stocks have been picked from the brokerage report of Geojit. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.