Share Market : Is it advisable to purchase shares of Canara Bank or LIC for long-term investment at this time?

Shares Toaday : As of May 29, 2025, both Canara Bank and the Life Insurance Corporation of India (LIC) offer unique opportunities for long-term investors, each possessing its own advantages and factors to consider.

Table of Contents

📈 Canara Bank Share: Consistent Growth with Moderate Potential

• Current Price: ₹110.94
• Analyst Target Price: ₹113.09 to ₹130
• 5-Year Forecast: Possible growth to ₹143.93 (approximately 30.6% increase)

Highlights:

Robust Fundamentals: Recent evaluations suggest that Canara Bank’s fundamentals are strong, indicating it may be a viable option for long-term investment.
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Technical Outlook: The stock shows a bullish trend on technical charts, with analysts advocating a “buy-on-dips” approach.

Valuation: The current price presents a modest upside, with analyst targets indicating a potential rise of about 4.3% to 17%.

Considerations:

Limited Short-Term Upside: Analyst targets suggest modest near-term growth, which may not attract investors looking for substantial short-term returns.

Market Sensitivity: As a public sector bank, Canara Bank’s performance may be affected by government policies and overall economic conditions.

🛡️ LIC Share : Encouraging Long-Term Prospects Despite Market Fluctuations

Current Price: ₹942
Analyst Target Price: ₹1,050 to ₹1,260
Analyst Consensus Target: ₹1,051.33 (approximately 20.7% upside)

Highlights:

Strong Q4 Performance: LIC reported a 38% year-on-year increase in net profit for Q4 FY25, totaling ₹19,039 crore, resulting in a notable surge in stock price.

Positive Analyst Outlook: Brokerages such as Motilal Oswal and Kotak Institutional Equities have provided “Buy” ratings, with target prices reaching up to ₹1,260, demonstrating confidence in LIC’s financial prospects.

Strategic Focus: LIC’s Share commitment to broadening its Share offerings and improving profitability strategically positions it for ongoing growth within the changing insurance sector.

Considerations:

Market Volatility: Earlier in 2025, LIC faced a substantial decline of ₹1.45 lakh crore in its equity holdings due to widespread market downturns, underscoring its vulnerability to market changes.

Valuation Metrics: Although LIC’s Share valuation at 0.7x FY24E EV seems justifiable, investors ought to evaluate this against the company’s growth potential and prevailing market conditions.

🔍 Comparative Overview

Feature Canara Bank LIC Sector Public Sector Banking Life Insurance Current Price ₹110.94 ₹942 Analyst Target Price ₹113.09 – ₹130 ₹1,050 – ₹1,260 5-Year Forecast Up to ₹143.93 (approx. 30.6% increase) Not specified Dividend Yield Moderate Moderate Risk Profile Moderate (banking sector exposure) Moderate to High (market-linked portfolio)

Also Read::https://latestindiannews.com/reliance-power-stock-soars-18-as-supertrend-indicator-signals-buy/

🧭 Investment Considerations
Canara Bank Share may attract investors looking for consistent growth with moderate risk, especially those focused on the banking industry.

LIC Share presents the possibility of greater returns, supported by robust recent performance and favorable analyst outlook, yet it carries a higher risk due to market volatility.

Note: Investment choices should be aligned with personal financial objectives, risk appetite, and investment timelines. It is recommended to seek advice from a financial advisor to customize investment strategies to your unique situation.

🔍 Should You Buy Canara Bank or LIC Shares Now (for Long-Term Investment)?

✅ If you’re a conservative investor

Choose: Canara Bank

• Why?
  • It has solid fundamentals and is part of the strong PSU banking sector.
  • Offers steady returns and decent dividend yield.
  • Less volatile than LIC due to limited market-linked exposure.
• What to watch for: Government policies, interest rate trends, and non-performing assets (NPAs).

🧠 Ideal for investors who want stable, moderate long-term growth.

✅ If you’re a moderate-to-aggressive investor

Choose: LIC (Life Insurance Corporation of India)

• Why?
  • Recent strong earnings growth (+38% YoY profit).
  • Analysts see up to 30% upside from current price.
  • Positioned well for India’s long-term insurance growth story.
• What to watch for: LIC’s equity exposure, market volatility, and EV (Embedded Value) growth.

🧠 Ideal for investors who can handle short-term volatility for stronger long-term returns.