LIC made big money in these stocks in FY22; do you own any?
LIC owned equities worth over Rs 9.50 lakh crore, and received a massive return from a couple of stocks in the ongoing financial year.
- Feb 14, 2022,
- Updated Feb 14, 2022 2:07 PM IST
Country’s biggest institutional investors Life Insurance Corporation of India (LIC), which owned equities worth over Rs 9.50 lakh crore, received a massive return from a couple of stocks in the ongoing financial year till February 11.
With a rally of 275 per cent, JSW Energy emerged as the top gainer in LIC’s portfolio. Shares of the company jumped to Rs 340.30 on February 11, 2022 from Rs 90.65 on April 1, 2021. LIC held a 9.01 per cent stake in the company as of December 31, 2021.
Brokerage HDFC Securities has a ‘Sell’ rating to JSW Energy with a price target of Rs 118. Shares of the company traded at Rs 329 on February 14, 2022. “We believe the stock has been trading at an unjustifiable valuation,” HDFC Securities said in a report in January.
Likewise, ICICI Securities also holds a ‘Sell’ call on JSW Energy with a price target of Rs 175. “We maintain ‘Sell’ on the stock, but increase target price to Rs 175 (earlier Rs156). We factor improved performance of the standalone business into our estimates as the overall improved scenario of thermal generation in the country is expected to continue for the next few years,” ICICI Securities said.
Tata group firms Tata Elxsi (up 166.96 per cent) and Tata Power Company (up 121.13 per cent) delivered a robust return to the insurer. LIC owned a 1.04 per cent stake in Tata Elxsi and 6.53 per cent in Tata Power Company as of December 31, 2021.
Tata Power last week posted a consolidated profit of Rs 426 crore for the quarter ended December 31, up 71 per cent against Rs 248 crore reported in the corresponding period of the last year.
HDFC Securities revised the price target for Tata Power upward to Rs 258 (from Rs 215 earlier) post Q3 results and upgraded the rating to ‘Add’ from ‘Reduce’.
“We raise FY23 earnings estimate by 8 per cent, factoring in increased profit at Bumi, falling AT&C losses in Odisha, strong execution and order wins in the solar business, and partial fixed cost recovery at Mundra through power sale to Gujarat under the new resolution,” HDFC Securities said in a report.
Indian Railway Catering and Tourism Corporation (IRCTC) and Adani Transmission also rallied 137 per cent and 101 per cent in FY22 so far.
The net profit of IRCTC jumped 167 per cent year-on-year (YoY) to Rs 208.80 crore in Q3FY22 over Rs 78.08 crore in Q3FY21. The surge in profit came due to the low base and contribution from all other segments.
Ravi Singhal, vice chairman, GCL Securities said, “IRCTC has reported great results in all parameters. Investors can look to buy the IRCTC stock on dips, keeping a target price of Rs 1,350 with a one-year time frame.”
LIC has been buzzing on Dalal Street as the company on Sunday filed its draft red herring prospectus (DRHP) for its initial public offering (IPO). As per the DRHP, the government-owned insurer will have up to 31,62,49,885 (31.62 crore) equity shares of the face value of Rs 10 on offer through the offer for sale (OFS), representing 5 per cent of equity stake.
The Indian Hotels Company, Indian Energy Exchange, ICICI Securities, Oil India, Rajesh Exports, GMR Infrastructure, Adani Total Gas, Bajaj Finserv, Vedanta, Tata Motors, ONGC, Canara Bank, Adani Enterprises, Bharat Electronics, Titan Company, Apollo Hospitals Enterprise, Bharat Electronics, Hindalco, Coforge, Crisil, Laurus Labs and Bank of Baroda stood among other players which rallied between 50 per cent 90 per cent since April 1, 2021.
Country’s biggest institutional investors Life Insurance Corporation of India (LIC), which owned equities worth over Rs 9.50 lakh crore, received a massive return from a couple of stocks in the ongoing financial year till February 11.
With a rally of 275 per cent, JSW Energy emerged as the top gainer in LIC’s portfolio. Shares of the company jumped to Rs 340.30 on February 11, 2022 from Rs 90.65 on April 1, 2021. LIC held a 9.01 per cent stake in the company as of December 31, 2021.
Brokerage HDFC Securities has a ‘Sell’ rating to JSW Energy with a price target of Rs 118. Shares of the company traded at Rs 329 on February 14, 2022. “We believe the stock has been trading at an unjustifiable valuation,” HDFC Securities said in a report in January.
Likewise, ICICI Securities also holds a ‘Sell’ call on JSW Energy with a price target of Rs 175. “We maintain ‘Sell’ on the stock, but increase target price to Rs 175 (earlier Rs156). We factor improved performance of the standalone business into our estimates as the overall improved scenario of thermal generation in the country is expected to continue for the next few years,” ICICI Securities said.
Tata group firms Tata Elxsi (up 166.96 per cent) and Tata Power Company (up 121.13 per cent) delivered a robust return to the insurer. LIC owned a 1.04 per cent stake in Tata Elxsi and 6.53 per cent in Tata Power Company as of December 31, 2021.
Tata Power last week posted a consolidated profit of Rs 426 crore for the quarter ended December 31, up 71 per cent against Rs 248 crore reported in the corresponding period of the last year.
HDFC Securities revised the price target for Tata Power upward to Rs 258 (from Rs 215 earlier) post Q3 results and upgraded the rating to ‘Add’ from ‘Reduce’.
“We raise FY23 earnings estimate by 8 per cent, factoring in increased profit at Bumi, falling AT&C losses in Odisha, strong execution and order wins in the solar business, and partial fixed cost recovery at Mundra through power sale to Gujarat under the new resolution,” HDFC Securities said in a report.
Indian Railway Catering and Tourism Corporation (IRCTC) and Adani Transmission also rallied 137 per cent and 101 per cent in FY22 so far.
The net profit of IRCTC jumped 167 per cent year-on-year (YoY) to Rs 208.80 crore in Q3FY22 over Rs 78.08 crore in Q3FY21. The surge in profit came due to the low base and contribution from all other segments.
Ravi Singhal, vice chairman, GCL Securities said, “IRCTC has reported great results in all parameters. Investors can look to buy the IRCTC stock on dips, keeping a target price of Rs 1,350 with a one-year time frame.”
LIC has been buzzing on Dalal Street as the company on Sunday filed its draft red herring prospectus (DRHP) for its initial public offering (IPO). As per the DRHP, the government-owned insurer will have up to 31,62,49,885 (31.62 crore) equity shares of the face value of Rs 10 on offer through the offer for sale (OFS), representing 5 per cent of equity stake.
The Indian Hotels Company, Indian Energy Exchange, ICICI Securities, Oil India, Rajesh Exports, GMR Infrastructure, Adani Total Gas, Bajaj Finserv, Vedanta, Tata Motors, ONGC, Canara Bank, Adani Enterprises, Bharat Electronics, Titan Company, Apollo Hospitals Enterprise, Bharat Electronics, Hindalco, Coforge, Crisil, Laurus Labs and Bank of Baroda stood among other players which rallied between 50 per cent 90 per cent since April 1, 2021.