LIC share price jumps 6% on bonus issue buzz; analysts weigh in

LIC share price today: Shares of state-run Life Insurance Corporation of India (LIC) surged more than 6 per cent in trade today as the company announced plans to issue first-ever bonus shares since IPO. LIC shares opened sharply higher at ₹780, compared with the previous close of ₹743.20 and hit a high of ₹789.65. 

As of 9:55 AM, LIC shares were holding the gains to quote 5.3 per cent higher at ₹783 on the National Stock Exchange (NSE). A total of 1.76 million shares of the insurance behemoth changed hands.  LIC bonus issue decision date  LIC in a regulatory filing said that its board will meet on April 13 to consider and approve a proposal for the issuance of bonus shares.

 

"A meeting of the Board of Directors of the Life Insurance Corporation of India (“the Corporation”) is scheduled to be held on Monday, April 13, 2026 to inter-alia consider and recommend a proposal for issue of Bonus shares in accordance with the applicable provisions, subject to the approval of the shareholders of the Corporation," the filing read.  CATCH STOCK MARKET UPDATES LIVE 

In the third quarter (Q3FY26), LIC had reported 17 per cent Y-o-Y jump in net profit to ₹12,958 crore on the back of growth in new business and investment income. 

LIC, which is the country's biggest insurer, had reported its net premium income at ₹1,25,613 crore in the quarter, up from ₹1,06,891 crore clocked in the same period a year ago.  LIC stock: Analysts view 

Aamar Deo Singh, SVP, research, Angel One, said that LIC continues to demonstrate strong franchise strength, anchored in its dominant position across participating, non-participating, and group insurance segments, supported by an extensive distribution network. Recent performance trends remain steady, with healthy growth in premium income and profitability, aided by an improving product mix and gradual shift towards higher-margin non-par offerings.

 

On the corporate action front (bonus issue), the analyst said that "it has supported positive market sentiment and a noticeable uptick in the stock."

 

"Overall, LIC remains structurally well-placed within the life insurance space, though sustained re-rating will hinge on consistent margin improvement and execution on its ongoing strategic transformation," the analyst said.  Rajesh Palviya, SVP - technical and derivatives research, Axis Securities, said that LIC shares are in a downtrend on the daily and weekly time frames, forming a series of lower tops and bottoms. However, with today's strong price action, the stock has observed a short-term relief rally towards it prior supply zone of ₹800-810 levels. 

 

Currently, LIC stock is sustaining above it 20-day SMA (771), which remains a strong support zone in the near term. The past couple of weeks have seen huge rising volumes, indicating buying support at lower levels, he said.

 

"Any sustainable close above ₹810 may extend this pullback action in the near-term," the analyst said, while advising traders to hold longs with a ₹770 stop loss for the expected upside of ₹840.

Kotak Institutional Equities on insurance sector

LIC reported a blockbuster quarter, with APE up around 50 per cent yoy in 3QFY26, driven by a low base and strong GST-led demand. VNB surged ~65 per cent yoy, supported by ~180 bps yoy expansion in VNB margins to ~21 per cent.  

Growth was broad-based across non-par savings, ULIPs and protection, with notable improvement in ticket sizes and sum assured. Bancassurance and alternate channels grew sharply, helping diversify distribution.  

Despite strong operating performance, persistency trends weakened due to the legacy low-ticket book, though management highlighted corrective actions taken in product design.  READ | Titan shares gain 4% on posting Q4 update; jewellery biz up 46% YoY 

A combination of strong protection growth, a shift to non-par, lowered GST hit and low APE base is a near-term tailwind for life insurance companies.  

On the flip side, solvency depletion is rapid in some cases. In the non-life business, the health business remains strong, coupled with the rangebound claims ratio. However, competition between players, especially in multi-channel insurer formats, is getting intense amid the expected cap on commissions. SBI Life, Star Health and PB Fintech are names we prefer.