Key Points
The stock's record-breaking rally came to a halt after the insurer gave the green light to raise wages by 17% for its one lakh employees...
The wage revision is without a doubt good news for the 1.10 lakh LIC employees, but the 29 lakh shareholders will be staring at the company's bottomline, which could see the annual implication of around Rs 4,000 crore, taking the total wage bill per year to Rs 29,000 crore...
In FY2023, LIC made provisions for Rs 2,100 crore for wage hikes, indicating that a significant portion of the expected hike was already factored into its pricing," said Santosh Meena, head of research at Swastika Investmart...
"Increased employee expenses due to the wage hike could pressure profit margins, making LIC less attractive to investors," believes Sonam Srivastava, smallcase manager and founder at Wright Research...
LIC, which is the largest domestic institutional investor in the Indian stock market, was also in the headlines for the front-running case..
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