How much more will LIC shares fall? | What should investors do in LIC shares?

LIC broke the hope of the investors:

Today we will talk of A great disappointment. Many people are disappointed and very upset. They were in trouble, it seemed. When the rain came, the rain broke the heart, so how is that heartbroken? The biggest IPO in this country came. Some time ago you would remember that LIC's IPO came. But at first many people did not apply for LIC's IPO.

Those who bid it because there was such a big IPO, then those who put bidding on whose trust the IPO was filled and subscribed when the listing happened, their heart was broken because the return did not come in the shares. From where the listings had reached, there was a new hope since then. There is a new wind in the market that is such that perhaps LIC and the Government of India will do something together to compensate for your loss.

Government companies generally have an age-old tradition. To pay a very hefty dividend. But if the government gives a dividend, then many companies will get relief for the company till the flood funds. He got something and will get it in the future also. Not only found but will also be found in the future. The company gives a hefty dividend, but whenever the result comes, today is the result of two times the company.

So seeing the dividend received there, many people mean exactly what I said earlier that if the rain came, the rain broke the heart, then the company has announced to give a dividend of one and a half rupees on the share of ₹ 10, then you know one and a half rupees. That it is not right to say cumin in the mouth of a camel. Nowadays, you look at the price per share issue is one and a half rupees for every ₹ 10 of its share. 

There was a discount of 60 on the share which was sold at ₹949. For policyholders, think about that today, who has got ₹ 70 on top of ₹ 80 even at ₹ 850. That would have been a different matter, but now the dividend that has been received, it is clear that the shares will have to be left in the dividend volume. 

Now it has been seen that what happened to the company, in this quarter the company has shown a profit of ₹2,410 crore net profit has come, which is about 1.5% lower than the profit they had made in the same quarter last year. Last time there was a profit of ₹ 2917.3 crores in the same quarter.

However, if you look at the record that has been made for the profit of the whole year. Then it is at the stop of ₹4,043 crores, which is about 39.4% above the financial year 2021 compared to last year. In the results, the business keeps going up and down a little bit, but there is a concern about this company that this company is slowly handing over its market share. Now the company which had a 100% market share, is in front of private companies.

If four companies are private companies in the competition, then they will take some part. Even today LIC is the biggest life insurance in the country. Despite this, private sector companies are growing and they are making a dent in their share. This concern remains a constant. Apart from this, based on these results, you can say that the performance of LIC is very bad, it will not be justified. 

If that will not be right, then the opinion of the  experts on LIC is the same as what was given earlier. Hold the shares for long term gain. If you had invested money in it thinking that you would earn in the listing. The double amount will happen in 6 months. If you had bidding this thinking then you are wrong. Now don't make another mistake. 

Thinking that it is useless now, it should be sold, take whatever you get. However, if you do this, if you are getting a better company than this, you are getting good opportunities. If you want to invest money there, then they can do it, but if you do not improve it, you just want to remove it in anger, then you should not do that work.

How much more will LIC shares fall?

LIC, This government company has not lived up to the expectations of the investors. Even after the poor listing, the performance of LIC's stock has been bleak. Shares are not stable in the market, and investors who had bet on IPO have suffered a big loss. On Friday, the stock of LIC came to the level of ₹ 800. While the issue price of LIC was ₹949.

Investors betting on the IPO have suffered a loss of ₹149 per share. Retail investors actively participated in LIC's IPO. There were also a large number of investors who put money directly into the market for the first time. Retail investors were expecting bumper returns from LIC. After this, investors were also expecting a hefty dividend in LIC and that too has been broken.

There is scope for further growth in this sector. In such a situation, this company will get benefits in the long term. Investors can stay in LIC for the long term. However, in the short term, there may be some loss. Overall, most brokers believe that LIC the long racehorse in Asia will not see a rally like the small-cap or mid-cap stocks. But investors can get valid returns in the long term. Investors who have a long-term view of LIC can stay in this stock.

Life Insurance Corporation's biggest IPO in India but there is a constant apprehension that before the IPO was coming up and since the IPO listing, it will disappoint investors and this concern is because there is a large number of new investors in it. Investors have invested money and if they get disappointed then it will not be good news for the market.

This will be very worrying news for the market. Back to LIC's Share on Friday for the first time, the LIC's stock has fallen and its issue price was ₹ 949. While falling from there, he has now reached ₹ 770.4 and closed below ₹ 800.  As of today's date, LIC's stock has closed on Monday at a market cap of 4,91,000 crores. 

There has been a decline of more than 15%, but there is a decline of 18%. From listing till now, this is not a minor issue. Especially if the new person who invested 17-18% of his money has slipped, then imagine what would be his condition and if he came to this market in the hope that he had invested money in LIC in the hope that the money will be made at the time of listing.

If there is going to be a quick income in this, then think about what will be the condition of his heart. The shares of LIC were listed on May 17. Today it is hardly 20 days and within 20 days three weeks have not been completed and you are seeing this situation. Every day it is going down compared to the previous day.

That is, it is declining. The story of further decline in this is very dangerous. On the one hand, we are hearing these thoughts from the beginning that there is no fear of loss in this company in the long run. There is no fear of loss, but when will the long run. Don't know how much it will fall in the stock market. 

What should investors do in LIC shares? 

It was expected that LIC can give a good dividend to cover the loss of investors, but it did not happen. Now the question is, what should the investors who have bought LIC shares at higher levels do. Brokerage firm Emkay Global Financial Services Ltd. has given the hold rating to LIC with a target of ₹875.

Many market experts believe that LIC can give good returns in the long run. This is a big company. The trick in this will be done slowly. Others have set LIC's target around 9% above the current price. Earlier, after listing, global brokerage Macquarie had given a target of ₹1,000 in LIC with a neutral rating. Trading says that LIC is a big player in the insurance business.

Finance Secretary of India recently said that this was the right price at half the price that was presented and it seems that slowly the stock has been expressed more and more similar views in front of it by the brokerage house.  The results which have come out just last week, it has registered a 17% decline in net profit consolidated in annual profit.

It made a profit of ₹2,410 crores in profits in the quarter. In March quarter i.e. January-February-March, it was 17% less than the same time last year, while the premium income was 17.9% more than their premium income. People paid a premium to LIC whereas last year he had 1,20,000 crores in three months and policyholder of LIC will take care.

Neither the policyholders nor the old staff and retail investors who got discounts has already passed all the discount rules. It has gone down and that's why, now the concern is increasing and if you see this concern in the market even in today's date of rising, then people are giving hold rating. His advice is a good way for those who are long-term investors. In such a situation that when they fall, buy something else and increase their portfolio. 

This is a very difficult job. That's why many people stay away from government companies. But if you had think about it for long time, while investing money in LIC. Then selling it at this time can be a good decision. But before taking this decision, definitely take the advice of your trusted investment advisor. Don't decide without him. Every man's situation is different. The same share will be priced at the same price for one person and may be cheaper for another person.

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