LIC surpasses SBI as the most valuable PSU; market-cap crosses 5.8 lakh Cr
One of the Union government's most profitable companies, Life Insurance Corporation of India has overtaken, India's largest lender, State Bank of India, as the most valuable public sector undertaking (PSU). LIC shares gained two-per cent more on Wednesday morning. The market-captialistion of the insurnace-giant touched the 5.8 lakh crore Rupees mark. With this an individual share of the PSU is worth 919.45 Rupees. Meanwhile SBI's shares dropped by one-percent.
LIC had remained amongst the conviction picks of many analysts. Centrum Broking at the start of January has said that LIC is trading at a discount to its Embedded Value which offers significant value comfort. As seen from Q1 results, LIC still is a dominant player and despite its huge size, their market share is still increasing. The regulatory changes done with respect to the PAR and Non PAR business is likely to significantly increase LIC's profitability in the long run. LIC's stock prices have recently approached the issue price, marking almost a two-year period of trading at a loss. Although LIC shares have surpassed the listing price, they remain below the initial public offering (IPO) price.
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