The share price of Life Insurance Corporation of India (LIC) increased by 1.8% during the trading session on Wednesday, even after the insurer revealed on Tuesday that the tax authorities had sent a demand notice for around ₹116 crore for failing to pay Goods and Services Tax (GST) for the 2017–18 tax year. The opening price of LIC shares on the BSE was ₹838.80 per share. The price of LIC shares fluctuated during the day, reaching a high of ₹853 and a low of ₹837.45. The lead research analyst at 5paisa, Ruchit Jain, claims that the price of LIC shares has been developing a higher top-higher-bottom pattern. Around ₹800 is where the 20 DEMA support is located, and 746 is the swing low.
The insurer claimed to have received the corporation’s interest and penalty demand order from Telangana state in its regulatory filing. The above ruling is subject to an appeal by the firm to the Hyderabad Rural Division Joint Commissioner (ST) within the designated time limit.
In addition, the business claimed in its statement that there would be no appreciable effects on its operations, finances, or other undertakings. LIC appears solid and has no meaningful impact on financials or company operations, according to Prashanth Tapse, research analyst and Senior vice president of research at Mehta Equities, despite getting a GST demand letter. LIC further said that it would appeal the ruling in opposition to the notice.
“Technically, ₹865-870 looks like a strong resistance; if it closes above the resistance, we can get the IPO price ( ₹889 ( ₹949- ₹60 (retail discount)) on the chart with a short-term target of ₹910-920,” said Tapse. LIC got a similar notification on Monday, requesting almost ₹806 crores for the underpayment of GST for the 2017–18 tax year, along with interest and penalties for Maharashtra.
Trendlyne data shows that the price of LIC’s shares increased by 19.15% over the previous year, underperforming its sector by 13.89%. The stock has increased by more than 26% in the past month, bringing it closer to its IPO price, which is now just 10.5% away. For the September quarter of FY 23–24, the firm recorded a 50% YoY fall in its standalone profit, which came to ₹7925 crores. A decline in premium revenue affected LIC’s bottom line.
