A tremendous rally has been seen in the shares of government insurance company LIC during the last few days. In recent months, LIC shares have soared to such an extent that not only has the CMP gone above the IPO price for the first time, but investors have also made huge profits. The rise in the last 4 months makes LIC shares included in the list of multibaggers.
Correction pressure was visible last week
On Friday, February 23, LIC shares were marginally higher by 0.20 per cent. It closed sharply at Rs 1,066.55. That means CMP (current market price) for LIC shares is Rs 1,066.55. In between, the stock has risen as high as Rs 1,175, which is a new 52-week high for LIC shares. There has been a slight correction in the prices in recent sessions. If we look at the chart of last week, this share has corrected by 0.14 percent in the last 5 days.
The price has increased so much this year alone
However, as per the last one month, this share has increased by 18 percent. There is more than a percent profit. At the same time, the share price is in profit of about 65 percent in terms of 6 months and 88 percent in terms of 1 year. Since the beginning of this year alone, the price of LIC's shares has increased by about 25 percent.
More than double the increase in a year
4 months ago, LIC's One share was at the level of Rs 600. On October 31, 2023, this share closed at a price of Rs 600. Thus, in the rally of the last 4 months, the stock is still in profit of 75 percent, whereas when compared with the 52-week high level, the profit becomes almost 100 percent. The 52-week low level of this share is Rs 530.05. That is, this share has shown a rise of more than double in one year, which gives it entry in the line of multibaggers.
The listing was done at a discount
LIC's IPO May 2022 I came in. Despite a lot of hype, the IPO did not get a very good response. After the IPO, the listing of LIC was also shaken and a discount was imposed. The price band in the IPO was kept at Rs 902 to Rs 949. In the recent rally, for the first time after listing, this share has gone above the level of Rs 949.
The price got support due to these reasons
Market analysts believe that the recent rally of LIC There are many reasons. Firstly, LIC's dominant position in the life insurance business is responsible. Apart from this, LIC has also benefited from the good environment created regarding government shares during the tenure of Modi government. LIC has launched many new products in recent times. The stock has also received support due to better quarterly results.
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