The country’s biggest institutional investor Life Insurance Corporation of India (LIC) was on a shopping spree in the June quarter when the benchmark equity index BSE Sensex declined over 9 per cent due to uncertainty over inflation and outflows by foreign institutional investors. Data available with corporate database Ace Equity showed that the insurance behemoth raised its stake in at least 78 firms in the BSE 500 index during the quarter gone by. Overall, it held more than 215 stocks in the broader index as of June 30, 2022.
LIC raised a stake in companies from across the sectors. For instance, it increased holding in consumer durables firm Voltas to 6.57 per cent in the June quarter from 4.71 per cent in the preceding quarter ended March 31. The domestic institutional investor also upped its stake in chemical player Aarti Industries to 6.61 per cent from 4.84 per cent earlier. With a fall of over 20 per cent each, shares of Aarti Industries and Voltas underperformed the headline indices in the June quarter.
The insurance firm seems bullish on the cement sector also. Data highlighted that LIC further increased its stake in Ramco Cement (to 8.29 per cent from 6.84 per cent), Shree Cement (to 3.01 per cent from 2.39 per cent), UltraTech Cement (to 4.65 per cent from 4.42 per cent) and Ambuja Cement (to 6.33 per cent from 6.30 per cent). On the other hand, it raised a stake in Union Bank of India, ICICI Bank, Kotak Mahindra Bank and State Bank of India in the financial space.
Dolat Capital Market is bullish on UltraTech Cement with a target price of Rs 8,077. “UltraTech reported revenue, volume in line, however realisation, EBITDA, EBITDA per tonne and adjusted profit after tax above estimates. We broadly maintain our estimates for FY23E and FY24E respectively. We expect 13.5 per cent, 12.4 per cent and 19 per cent revenue, EBITDA and adjusted PAT CAGR over FY22-24E led by 9.6 per cent and 10.7 per cent volume growth and 6.3 per cent/ flat realisation growth in FY23E/ FY24E,” it added.
Mindtree, Dixon Technologies, HDFC AMC, Welspun Corp, Deepak Nitrite, Aditya Birla Sun Life AMC, Capri Global, Info Edge, Dr Reddy’s Lab, IGL, Colgate, JSW Steel, CAMS, Tata Consumer Products, ACC, Wipro, HDFC, TVS Motor, Infosys, Adani Total Gas, L&T, Pfizer, Astral, Godrej Agrovet, HCL Technologies, TCS, Hero MotoCorp, CESC, Adani Enterprises, Bharti Airtel, Zydus Lifesciences were among firms where LIC increased its holdings in the previous quarter.
Brokerage Nirmal Bang Securities has an ‘Accumulate’ rating on HDFC AMC with a target price of Rs 2,132. “The company has indicated market share improvement in net flows. A sustained improvement in net flows market share and investment performance should yield positive results. HDFC AMC remains steadfast on new product launches. Besides launching new MF products, it is also focusing on scaling up its AIF offerings. Given the current volatile market environment, we would wait for a more sustained improvement in revenue yields, along with an improvement in asset mix,” it said.
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