LIC or Life Insurance Corporation is among the Biggest stock market investors in India, managing several lakh crore worth of Stocks. Therefore, any buying and selling of LIC matters a lot in share market. Investment decisions of LIC is so influential that it can easily bring big changes in the price of main Indices.
In this article, we are going to quickly take a look at those stocks where LIC is currently investing its money.
Due to some reasons, copying Big Investors in an exact way might not be a good idea at all. You can check this article Is it Good Idea to copy portfolios of Big Investors to know why I am saying so with complete details.
However, a quick look at what these kind of Big investors (like LIC) are doing in the stock market and which stocks they are adding to their portfolio might help us to pick some good stocks which can increase the potential of our portfolio too.
Why these Stocks are Favorite of LIC?
Buying a stock consistently in every quarter could mean that you assume the stock is still undervalued in the stock market as compared to where other stocks are trading, valuations are attractive, expecting bright future of the company etc.
For whatever reasons the LIC is buying these stocks, it can be assumed that LIC definitely like these stocks at present and thus, are their favorite right now for the investment portfolio.
There are some stocks where LIC has been increasing its holding since last 4 quarters. Such stocks have been picked and mentioned in the below list.
List of Favorite Portfolio Stocks of LIC at Present
| COMPANY | September 2021 | June 2021 | March 2021 | December 2020 |
|---|---|---|---|---|
| Abbott India | 2.10% | 1.64% | - | - |
| ACC | 6.14% | 5.86% | 5.75% | 5.06% |
| Alembic Pharma | 3.54% | 3.46% | 3.04% | 1.01% |
| Amara Raja Batteries | 7.09% | 5.41% | 4.82% | 3.95% |
| Ambuja Cement | 6.01% | 5.57% | 4.62% | 3.93% |
| Apollo Hospitals | 3.48% | 2.58% | - | 1.11% |
| Atul Auto | 3% | 1.59% | 1.11% | - |
| Aurobindo Pharma | 4.34% | 3.46% | 1.91% | - |
| Balkrishna Industries | 2.44% | 1.77% | 1.22% | - |
| Biocon | 4.24% | 4.11% | 4.11% | 2.27% |
| Cadila Healthcare | 5.68% | 3.63% | 3.30% | 2.36% |
| Cipla | 3.86% | 2.27% | 1.81% | 1.73% |
| Dilip Buildcon | 2.95% | 1.87% | - | - |
| Dixon Tech | 3.72% | 1.06% | - | - |
| Dr Reddy's Labs | 4.50% | 2.34% | - | - |
| Endurance Tech | 3.51% | 2.03% | - | - |
| Godrej Agrovet | 1.87% | 1.60% | 1.54% | 1.12% |
| HCL Tech | 2.34% | 1.94% | 1.45% | 1.24% |
| HDFC AMC | 5.15% | 4.07% | 3.90% | 3.51% |
| Heidelberg Cement | 3.57% | 2.96% | 1.56% | - |
| Hero Motocorp | 10.88% | 10.19% | 10.26% | 9.14% |
| IEX | 2.55% | 1.61% | - | - |
| IndusInd Bank | 5.40% | 4.77% | 4.57% | 3.68% |
| IRCTC | 2.11% | 1.90% | 1.12% | - |
| JSW Energy | 7.47% | 5.91% | 5.31% | 4.90% |
| Kajaria Ceramics | 1.99% | 1.20% | - | - |
| Kotak Mahindra Bank | 4.96% | 4.38% | 3.76% | 3.44% |
| Lupin | 7.86% | 6.99% | 5.03% | 3.73% |
| Lux Industries | 4.84% | 2.99% | 2.98% | 2.60% |
| Natco Pharma | 4.04% | 2.46% | 1.64% | 1.64% |
| Nippon AMC | 4.95% | 3.59% | 2.59% | 1.48% |
| PI Industries | 3.48% | 2.85% | 2.00% | - |
| Rajesh Exports | 10.2% | 9.38% | 8.87% | 7.17% |
| Ramco Cement | 5.35% | 4.35% | 3.81% | 3.62% |
| Reliance Industries | 5.98% | 5.82% | 5.66% | 5.60% |
| Shriram Transport | 5.65% | 4.30% | 3.20% | 2.69% |
| Tata Consumer | 1.69% | 2.72% | - | - |
| Tech Mahindra | 4.31% | 4.19% | 2.64% | 2.03% |
| Torrent Power | 4.05% | 1.99% | - | - |
| UPL | 10.12% | 8.93% | 8.41% | 8.19% |
Data Source: Screener.in
Note: Adani Group Stocks and PSUs have been omitted from the list.
In September 2021 column, mentioned number is the percentage of stake that LIC holds as on 30th September 2021. December 2020 column indicates the percentage of stake that LIC held on 31st December 2020. Other columns too indicates data in this pattern.
So, that were the stocks where LIC is purchasing shares as per latest shareholding pattern data of the companies. As we now know the names, lets quickly look at some questions that might come to your mind before investing money in a stock that LIC owns.
Should you Buy the Favorite Stocks of LIC immediately?
Some of the stocks mentioned above in the list have recently seen a good jump in their price. While some of them have not seen any sharp jump yet. It is possible that those stocks which have started going up may no longer a favorite stock of LIC as we have the data of upto 30th September 2021 only.
Therefore, before you plan to invest some money in any stocks from the list, i would suggest you to do a research on the stock from your end also. This list was solely curated for the purpose of bringing in your notice about where LIC is investing its money in stock Market, as per latest data.
Is it Good to Copy Stock Investment Portfolio of LIC?
As we discussed earlier, it is not a good idea at all to copy portfolio of Big Investors like LIC and make an exact same portfolio for us too. LIC is investing money with different goals and will not take Big Risk at any point of time in Stock Market. While smaller investors may have more capacity to take Big Risk and have different Goals.
Should you buy a Stock just because LIC owns it?
LIC ownership in the stock can be a factor in deciding whether you should buy a stock or not. But just because LIC holds shares of a particular company, you shouldn’t buy that stock. Fundamentals, Future Outlook of the business and many other factors are important to consider before buying any stock.
How LIC has so much money to invest in Stock Market?
LIC or Life Insurance Corporation is the Biggest Life Insurance company in India. They have more than 50% market share in the Industry. As of now, LIC is managing over ₹30 lakh crore worth assets that are invested in different asset classes. Some amount has been invested in Equities (Stock Market) while a major part has been invested in Debt Securities.
What is the Investment Strategy of LIC?
LIC is known to take Value Investing Approach in Stock Market. Whenever shares of good companies are trading for less than their Intrinsic value, LIC may invest some amount in that stock till it is hovering around lower levels or LIC doesn’t reaches its Limits. In a single company, LIC can’t hold more than 15% shares. It would require to take special permission from the regulators to own more than 15% shares.
Intrinsic value of a stock is calculated by the Investment Research Team of LIC. For a different person or institution, intrinsic value of a particular stock could be different than what LIC estimates.
LIC is always ready to hold its stock investments for long term. However, whenever shares are going higher and trading at a higher price, LIC might book some profits from those companies. Timely profit booking helps LIC to safeguard the funds and realise the profits.
That is the end of this article.
Hoping that this article would help you somewhere.
Good luck : )
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