LIC Bonus Share: There is tremendous movement in the shares of government insurance company Life Insurance Corporation of India (LIC) in the stock market. The company’s shares have risen by about 6 percent in the last two trading sessions. On Monday, it reached an intraday high of Rs 813 on Bombay Stock Exchange (BSE) with a strong rise of 4 percent. The biggest reason behind this rise is the company’s recent announcement, in which it has been announced to give one bonus share (1:1 Bonus Issue) to the investors for one share.
Investors are in trouble
In fact, LIC has recently presented the results of the fourth quarter of the financial year 2026 (Q4 FY26), which has significantly increased the confidence of the market. The consolidated net profit of the company has increased by 23 percent to Rs 23,467 crore. This figure was Rs 19,039 crore in the same quarter a year ago. Not only the profit, but the net premium income of the company has also increased by 12 percent to Rs 1.65 lakh crore. Talking about the entire financial year, LIC’s Asset Under Management (AUM) has reached a huge level of Rs 57.29 lakh crore with a growth of more than 5 percent. At the same time, the total profit on annual basis has increased by more than 19 percent to Rs 57,419 crore.
When will you get free shares, this is the important date
Along with excellent financial results, the company has taken a big decision to give bonus shares in the ratio of 1:1. This simply means that if you have one share of LIC with a face value of Rs 10, then you will get another share of the same face value absolutely free. The company has fixed May 29 as the ‘record date’ for this bonus issue. That is, only those investors who have LIC shares in their demat account till May 29 will get the direct benefit of this free share.
Brokerage firm was also kind, gave such a big target
After this strong performance, big brokerage houses around the world are looking bullish on LIC shares. The biggest bet has been made by ‘Citigroup’. Citigroup has given ‘Buy’ rating to this stock and has set a big target price of Rs 1,475. If we look at Monday’s price of Rs 813, it shows a direct profit of about 81 percent. Citi believes that the product mix of the company is improving, due to which there is full hope of good growth in future. At the same time, ‘Bernstein’ has given a target of Rs 900 while maintaining the rating of ‘Market Perform’, which indicates an increase of 11 percent from the current price. JM Financial has also increased the target to Rs 960 while maintaining its ‘buy’ rating.
What is the right plan for you, buy or sell?
Before taking any decision in the market, it is important to see the past performance of the stock. In the last one month, LIC shares have shown a slight gain of 2 percent, but if we look at the figures of the last six months, it is still at a loss of 7 percent. At present the total market cap of the company is at the level of Rs 5.27 lakh crore. In such a situation, factors like strong quarterly results, gift of bonus shares, increasing margins make this stock attractive for long-term investors. Experts also believe that the business model of the company is continuously improving, which can create wealth for retail investors in the coming times.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
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