In a significant financial milestone, the Life Insurance Corporation of India (LIC) has outstripped the State Bank of India (SBI) to become the most valuable Public Sector Undertaking (PSU), boasting a market capitalization touching ₹5.8 lakh crore.
The surge in LIC’s market cap was fueled by a more than 2% gain in its share price during morning trades on Wednesday, reaching a 52-week high of ₹919.45 per share. In contrast, SBI experienced a 1% dip in share price on the BSE, with its market cap hovering around ₹5.62 lakh crore.
LIC’s share price has exhibited a robust uptrend since the beginning of November, witnessing an impressive gain of over 50%. Post-listing, the stock faced downward pressure until March 2023, hitting an all-time low of ₹530. However, a notable turnaround commenced in the subsequent months, culminating in a substantial 12.83% gain in November.
This positive trajectory gained momentum in December, with a remarkable 22.66% surge. In the current month and since the onset of 2024, LIC’s stock has demonstrated a strong upward movement, accumulating a gain of more than 10%. At present levels, the stock is merely 4% away from its Initial Public Offering (IPO) price.
Analysts have consistently expressed confidence in LIC’s performance, with Centrum Broking noting in January that LIC is trading at a discount to its Embedded Value, offering substantial value comfort. Despite its substantial size, LIC’s market share continues to grow, evident from its Q1 results.
As LIC solidifies its position as the leading PSU, the financial markets eagerly observe its continued growth and impact on India’s financial landscape.
