Top 5 Stocks Held By LIC – Strategic Equity Holdings!

 

Strategic equity holdings refer to the ownership of a significant percentage of shares or equity in another company, typically with the intent of achieving specific strategic objectives. These holdings are often made by corporations, investment firms, or other entities to gain influence or control over the target company’s operations or to support broader business strategies. Here are some key points to understand about strategic equity holdings:

  1. Ownership Percentage: Strategic equity holdings typically involve the acquisition of a substantial percentage of a company’s outstanding shares. The exact percentage can vary, but it is often enough to have a meaningful influence on the target company’s decision-making processes.
  2. Strategic Objectives: The primary purpose of holding a strategic equity stake is to achieve specific strategic objectives, which can vary widely. These objectives may include gaining access to new markets, technologies, distribution channels, or synergies that can benefit the investing company.
  3. Influence and Control: With a significant equity stake, the investor may have the ability to influence the target company’s board of directors, management decisions, or overall strategic direction. In some cases, the investor may seek to gain outright control of the target company.
  4. Long-Term Investment: Strategic equity holdings are often viewed as long-term investments. The investor is interested in a sustained and mutually beneficial relationship with the target company rather than a quick profit through trading shares.
  5. Collaboration: Strategic equity holders may collaborate with the target company on various initiatives. This can involve joint ventures, technology sharing, research and development partnerships, or other forms of cooperation.
  6. Diversification: For some companies, strategic equity holdings are a way to diversify their business interests. By investing in companies in different industries or geographic regions, they can reduce risks associated with being too concentrated in a single market or sector.
  7. Industry-Specific: Strategic equity holdings are common in certain industries where partnerships, alliances, and industry consolidation are prevalent. For example, in the technology sector, large tech companies often hold strategic equity stakes in startups to gain access to innovative technologies.
  8. Financial Returns: While the primary focus is on strategic objectives, investors in strategic equity holdings may still expect a financial return on their investment. However, the financial return may not be the sole or primary motivation.
  9. Risks: Holding a significant equity stake in another company comes with risks. Market fluctuations, changes in the target company’s performance, and shifts in industry dynamics can all affect the value and success of the investment.
  10. Regulatory Considerations: Depending on the jurisdiction and the size of the investment, there may be regulatory requirements and restrictions related to strategic equity holdings. These can include antitrust and competition regulations.

Overall, strategic equity holdings are a way for companies to leverage their financial resources to achieve broader strategic goals beyond simple financial gain. The specific objectives and outcomes of such investments can vary widely based on the nature of the investing company and its strategic priorities.

 

Top Stocks Held By LIC – The Life Insurance Corporation of India (LIC) is an insurance provider with offices in Mumbai, India. The company, which was founded in 1956, principally offers life insurance products, such as pension plans, health plans, and group insurance schemes.

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LIC is a key player in the Indian equities market due to its enormous financial assets and long-standing position in the country’s financial system. Market participants, analysts, and investors keep a careful eye on the company’s stock holdings. As of June 2023, the company’s Assets Under Management Stood at 46.11 lakh crore.

Here are te Top 5 Stocks Held by LIC

Top Stocks Held by LIC #1 – IDBI Bank

One of India’s Top and Fastest Growing Banks is IDBI Bank. All customer segments can choose from a broad range of financial services provided by the Bank. The bank strives to continuously provide value to its clients in order to become the most convenient and well-liked financial institution in India.

 

 

The bank had 1890+ branches and 3300+ ATMs across India. The bank’s net interest income increased by 24% from Rs. 9,162 Cr in FY22 to Rs. 11,431 Cr in FY23 and for the same period total deposits increased by 9.5% from Rs. 2,33,134 Cr to Rs. 2,55,499 Cr. EPS stood at Rs. 3.45.

LIC is one of the promoters, it holds a 49.24% stake in the company which is worth Rs. 35,126.4 Cr.

Particulars Amount Particulars Amount
CMP (Rs) 68.85 Market Cap (Cr) 70,740
EPS (Rs) 3.45 Stock P/E (%) 13.06
ROE (%) 10.21 ROCE (%) 8.63
Promoter Holding (Rs) 45.47 LIC Holding (%) 49.24
Debt to Equity (%)  0.3 Price to Book Value (%) 1.27
Net NPA (%) 0.92 CASA (%) 53.03

Top Stocks Held by LIC #2 – Castrol India Ltd

Castrol India Ltd. is a manufacturing company focusing on automotive and industrial lubricants. The company owns up to 20% market share. It is also involved in the distribution of its finished products. It is known worldwide for serving its marine, automotive, aviation, industrial, and oil exploration customers.

The company follows a calendar year basis (January to December) for financial reporting.  The company reported a revenue of Rs. 4,774.49 Cr in FY22 which is an increase of 13.89% from Rs. 4,192.06 Cr in FY21. Its net profit increased to Rs. 815.15 Cr in FY22 which is an increase of 7.53% from Rs. 758.09 Cr in FY21. EPS stood at Rs. 8.24.

LIC holds a 11.29% stake in the company which is worth Rs. 1,655 Cr and Aditya Birla Sun Life Trustee Pvt Ltd mutual fund holds a stake in the company.

Particulars Amount Particulars Amount
CMP (Rs) 147.55 Market Cap (Cr) 14,599
EPS (Rs) 8.24 Stock P/E (%) 14.94
ROE (%) 47.55 ROCE (%) 62.11
Promoter Holding (Rs) 51 LIC Holding (%) 11.29
Debt to Equity (%) 0 Price to Book Value (%) 6.58
Net Profit Margin (%) 15.51 Operating Profit Margin (%) 23.2

Top Stocks Held by LIC #3 – Hindustan Copper Ltd

Founded on November 9, 1967, Hindustan Copper Limited (HCL) is a public sector enterprise that is managed by the Indian government’s Ministry of Mines. As the sole vertically integrated copper producer in the country, it manufactures copper from the mining stage through beneficiation, smelting, refining, and casting of refined copper metal into downstream marketable products.

 

 

The company reported a revenue of Rs. 1,677.33 Cr in FY23 which is a decrease of 7.94% from Rs. 1,821.93 Cr in FY22. Its net profit decreased to Rs. 295.46 Cr in FY23 which is a decrease of 20.96% from Rs. 373.83 Cr in FY22. EPS stood at Rs. 3.06.

As per the recent shareholding information, LIC holds a 11.23% stake in the company which is worth Rs. 1,721 Cr and some of the mutual funds like SBI PSU Fund, Quant Mutual Funds hold a stake in this company.

Particulars Amount Particulars Amount
CMP (Rs) 162.4 Market Cap (Cr) 14,969
EPS (Rs) 3.06 Stock P/E (%) 32.52
ROE (%) 14.79 ROCE (%) 18.12
Promoter Holding (Rs) 66.14 LIC Holding (%) 11.23
Debt to Equity (%) 0 Price to Book Value (%) 4.57
Net Profit Margin (%) 17.61 Operating Profit Margin (%) 29.3

Top Stocks Held by LIC #4 – Hero MotoCorp Ltd

Manufacturing motorcycles is the primary business of Hero MotoCorp Ltd. Motorcycles, scooters, and related spare parts are produced and sold by the business. Following closely behind are scooter sales, which make up the greatest portion of the total revenue.

The company revenue grew by 15.59% from Rs. 29,551.28 Cr in FY22 to Rs. 34,158.38 Cr in FY23 and for the same period, net profit grew by 21.28% from Rs. 2.316.88 Cr to Rs. 2,809.96 Cr. EPS stood at Rs. 140.6.

As per the recent shareholding information, LIC holds an 11.22% stake in the company which is worth Rs. 6,715.2 Cr, and ICICI Prudential Life Insurance Company Ltd hold a stake in this company.

Particulars Amount Particulars Amount
CMP (Rs) 2,997.35 Market Cap (Rs) 60,370
EPS (Rs) 140.6 Stock P/E (%) 16.69
ROE (%) 17.26 ROCE (%) 23.93
Promoter Holding (Rs) 11.22 LIC Holding (%) 11.22
Debt to Equity (%) 0.02 Price to Book Value (%) 2.82
Net Profit Margin (%) 8.04 Operating Profit Margin (%) 11.6

Top Stocks Held by LIC #5 – Coal India

Coal India Ltd. (CIL) is a government-owned coal mining company. Coal and products made from coal are produced there. The company’s product line includes coking coal, semi-coking coal, non-coking coal, hard coal, washed and beneficiated coal, coal fines, heavy oil, and coke.

Through its subsidiaries, the company conducts business in 83 mining regions spanning over eight Indian states. There are 322 mines owned by the company, including 138 underground, 171 opencast, and 13 mixed mines. It oversees a variety of other establishments, including hospitals, workshops, and more.

The company revenue grew by 25.98% from Rs. 1,09,941.45 Cr in FY22 to Rs. 1,38,506.22 Cr in FY23 and for the same period, net profit increased by 62.26% from Rs. 17,358.1 Cr to Rs. 28,165.19 Cr. EPS stood at Rs. 45.7.

 

 

As per the latest shareholding data, LIC holds 11% stake in the company which is worth of Rs. 19,069 Cr.

Particulars Amount Particulars Amount
CMP (Rs) 281.25 Market Cap (Cr) 1,73,172
EPS (Rs) 45.7 Stock P/E (%) 4.67
ROE (%) 56.03 ROCE (%) 71.76
Promoter Holding (Rs) 63.13 LIC Holding (%) 11
Debt to Eqity (%) 0.07 Price to Book Value (%) 2.3
Net Profit Margin (%) 14.16 Operating Profit Margin (%) 26.5

List of Stocks with High LIC Holdings

Company Name CMP (Rs) Market Cap (Cr) LIC Holding (%)
BHEL 129.9 44,848 10.07
Dr. Reddy’s Laboratories Ltd 5,744 95,748 9.72
Capri Global Capital Ltd 7,495 4,52,954 9.69
CARE Rating 855.15 2,446 9.65
Hindalco Industries 497.25 1,08,607 9.45
Grasim Industries Ltd 1,932.65 1,27,320 9.28
HDFC Asset Management Company 2,665.50 55,907 9.21
Adani Ports & Special Economic Zone Ltd 847.85 1,83,622 9.12
Bombay Wire Ropes Ltd 30.36 15.9 8.89
Gujarat Petrosyntheses Ltd 82 48.95 8.86

 

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Top 5 Stocks Held By LIC – Strategic Equity Holdings!

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