Adani, Patanjali, HAL: Check what LIC bought in June quarter on D-Street

Life Insurance Corporation of India (LIC) upped stake in select companies across sectors including chemicals, banks, cement and defence, among others in the first quarter of financial year 2024-25, or Q1FY25, during which the benchmark BSE Sensex gained 7%. On the other hand, the broader BSE Midcap and BSE Smallcap indices rallied 17% and 21% respectively, during the same period.

Initial shareholding data showed that the country’s largest domestic institutional investor increased its stake in a couple of Adani Group stocks during the quarter. It raised its holdings in Adani Energy Solutions to 3.68% for the quarter ended June 2024 from 3% in the preceding quarter March 2024. Likewise, it raised its stake in Adani Enterprises to 4.07% from 3.93% during the same quarter.

LIC also lapped up more than 1% stake in India Tourism Development Corporation, Ador Welding, Poonawalla Fincorp, and PSP Projects. LIC was not among the key shareholders of these companies in the previous quarter ended March 31, 2024, as per data available with the BSE.

In the cements space, the insurance behemoth raised its holdings in Shree Cement to 4.19% in the June quarter from 3.91% in the preceding quarter. It also increased its stake in UltraTech Cement (to 1.62% from 1.49%), and The Ramco Cements (to 7.10% from 6.37%).

Broking firm KRChoksey Shares and Securities has an ‘accumulate’ rating on The Ramco Cements with a target price of Rs 839. On the other hand, it has a ‘buy’ call on Shree Cement with a target price of Rs 30,662

Data available with ACE Equity further highlighted the LIC raised its stake in the State Bank of India (SBI) to 9.06% from 8.93% during the same period. It also upped its stake in Kotak Mahindra Bank to 6.99% from 6.46% earlier.

With an increase of 1.28 percentage points, LIC now holds a 2.86% stake in Apollo Hospitals Enterprises. Apollo Tyres, Granules India, SJVN, Bharat Dynamics, Deepak Nitrite, Titan Company, Patanjali Foods, Container Corporation of India, Hindustan Aeronautics, Sona BLW Precision Forgings, and Power Grid Corporation of India stood among other companies in which LIC increased its stake in the June quarter.

Brokerage ICICI Direct is bullish on Apollo Tyres with a target price of Rs 635. “Net debt-free balance sheet in sight, sustainable double-digit margins and RoCE matrix, we upgrade the stock to ‘buy’ and believe it can command better valuation multiples,” the brokerage said in a report. On the other hand, Antique Stock Broking is positive on Patanjali Foods with a target price of Rs 2,144.

“Patanjali Foods’ (PFL) board has approved the proposal to acquire Patanjali Ayurved’s (PAL) home and personal care (HPC) business for a total consideration of Rs 11 lakh crore. We believe this acquisition is a positive move and should add to PFL’s growth levers and improve the profitability of its overall business.

The acquisition is at a very attractive valuation of 0.4 times FY24 sales/ 2.2x FY24 EBITDA,” Antique Stock Broking said.
 
(Note: Complete shareholding data is yet to be announced.)