85 LIC-owned shares jump over 100% in FY24; do you own any?

April 02,2024

A majority of stocks owned by the Life Insurance Corporation of India (LIC) delivered positive returns to the insurance behemoth in FY24. However, data showed that at least 85 stocks in the portfolio of institutional investors rallied more than 100% during the year. With a surge of 427%, Gokak Textiles emerged as the top gainer on the list. LIC kept its stake the same in the company at 4.54% till December 2023.

Promoter Shapoorji Pallonji and Company held a 73.56% stake in the company as of December 2023. Gokak Textiles manufactures cotton yarn, blended yarn and industrial fabrics, among others.

The next on the list is from the renewable energy space—Suzlon Energy. Shares of the company gained 412% during April 2023 and March 2024. Brokerage Anand Rathi is bullish on Suzlon Energy with a target price of Rs 49. Shares of the company traded at Rs 41.40 in the afternoon trade on April 1.

“De-carbonisation, energy-security concerns and falling costs drove global renewable energy (RE)-capacity additions 50% YoY in CY23 to a record 507GW. India’s RE capacity in the last decade rose by over 100GW to 178GW in FY23. It is expected to rise over 3x to 500 GW by 2030. Domestic wind energy opportunities now are 40GW, with orders of 12GW (IPPs + C&I) being executed. Limited competition will benefit OEMs Suzlon and Inox Wind,” Anand Rathi said in a report.

Gujarat State Financial Corporation (up 333%), Housing & Urban Development Corporation (up 332%), TIL (up 315%), IFCI (up 304%), Rail Vikas Nigam (up 269%) and Bharat Heavy Electricals (up 253%) stood among other major gainers in the portfolio of LIC. Antique Stock Broking is bullish on Bharat Heavy Electricals (BHEL) with a target price of Rs 299, indicating an upside of nearly 20% against the current market price of Rs 250.

“Supported by strong ordering, improving execution, and the benefits of operating leverage, BHEL’s earnings are anticipated to climb up multi-fold over FY24–26. With the completion of its legacy orders by FY25, we expect the new cycle of orders to enter the execution phase FY26 onwards and hence increase our FY26E earnings estimate by 13%,” Antique Stock Broking said.

Among the other major stocks, shares of NBCC, Power Finance Corporation, The Jammu & Kashmir Bank, Dilip Buildcon, Oracle Financial Services Software, Punjab National Bank, Dixon Technologies, Lupin, Oil India, Tata Motors, Bajaj Auto, Union Bank of India, HDFC Asset Management Company, PTC India, Adani Ports, Adani Green Energy, Tata Power, Canara Bank, Hero MotoCorp and HPCL also rallied more than 100% during the financial year ended March 2024.