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LIC is Betting on These Five Stocks

In the last post I discussed about the top 25 stock holdings of LIC. In this post, I am discussing 5 stocks in which LIC has increased its holdings considerably in the last quarter. Though LIC has bought many stocks I have handpicked below 5 considering that fact that these are fundamentally strong companies with consistent growth opportunities.

1. Asian Paints

Since its foundation in 1942, Asian Paints has come a long way to become India’s leading and Asia’s fourth largest paint company, with a turnover of Rs. 158.5 billion. Asian Paints now operates in 19 countries and have 26 paint manufacturing facilities in the world, servicing consumers in over 65 countries.

Life Insurance Corporation has increased its stock holdings of Asian Paints to 4,48,59,732(4.68%) in March 2017 from 4,50,04,429(4.69%) in December 2016.

Market cap: Rs 1,10,783 Cr (Large Cap) 
P/E:  56.57 
Industry P/E:  54.07 
Dividend Yield:  0.90 % 
Debt Equity:  0.06 
Return on Equity:  34.39 % 
Price to Book:  14.57 

2. Bajaj Auto

Bajaj Auto Limited is an Indian two-wheeler and three-wheeler manufacturing company. Bajaj Auto manufactures and sells motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. Bajaj Auto is the world’s sixth-largest manufacturer of motorcycles and the second-largest in India. It is the world’s largest three-wheeler manufacturer.

Life Insurance Corporation(LIC) has increased its stock holdings of Bajaj Auto to 1,56,02,107(5.39%) in March 2017 from 1,45,50,757(5.03%) in December 2016.

Industry:  Auto – 2 &3 Wheel 
Market cap:  Rs 87,959 Cr (Large Cap) 
P/E  20.77 
Industry P/E  27.32 
Dividend Yield  1.81% 
Debt Equity  0.01 
Return on Equity  29.51% 
Price to Book  5.17

3. Castrol India

Castrol India Limited is an automotive and industrial lubricant manufacturing company. Castrol India is the largest manufacturer of automotive and industrial lubricants in the Indian lubricant market and owns nearly 48% market share in the overall Indian lubricant market.

Life Insurance Corporation(LIC) has increased its stock holdings of Castrol India Ltd to 3,43,85,472(6.95%) in March 2017 from 3,14,02,126(6.35%) in December 2016.

Industry:  Lubricants 
Market cap:  Rs 21,716 Cr (Large Cap) 
P/E:  32.45 
Industry P/E:  31.90 
Dividend Yield:  2.51% 
Debt Equity:  0.00 
Return on Equity:  115.24% 
Price to Book:  36.45

4. Container Corporation of India

Container Corporation of India Ltd is a Navratna Public sector undertaking under the Indian Ministry of Railways. Incorporated in March 1988 under the Companies Act, CONCOR commenced operations in November 1989 taking over an existing network of seven inland container depots (ICDs) from Indian Railways. It now has a network of 63 ICDs/CFSs (Container Freight Stations) throughout India. CONCOR operates three core businesses: cargo carrier; terminal operator, and warehouse operator.

Life Insurance Corporation(LIC) has increased its stock holdings of Container Corporation of India to 71,52,124(3.67%) in March 2017 from 59,51,534(3.05%) in December 2016.

Industry:  Logistics
Market cap:  Rs 29,105 Cr (Large Cap)
P/E:  44.07
Industry P/E:  51.34 
Dividend Yield:  0.90%
Debt Equity:  0.03 
Return on Equity : 10.11%
Price to Book : 3.63

5. Dewan Housing

DHFL stands strong as one of India’s largest housing finance companies (and the second largest in the private sector). DHFL was established to enable access to affordable housing finance to the lower and middle income groups in semi-urban and rural parts of India. DHFL is the second housing finance Company to be established in the country, however, with a unique mission, which is today benchmark as a model of financial inclusion in the Indian financial services sector.

Life Insurance Corporation(LIC) has increased its stock holdings of Dewan Housing to 96,70,472(3.09%) in March 2017 from 84,70,472(2.71%) in December 2016.

Industry:  Finance – Housing 
Market cap:  Rs 13,443 Cr (Mid Cap) 
P/E  12.88 
Industry P/E  21.60 
Dividend Yield  0.93 % 
Debt Equity  11.63 
Return on Equity  14.57 % 
Price to Book  1.74 

Given a chance, I would be buying CONCOR(CMP: Rs.1191) and Dewan Housing(CMP: Rs.429) 😃

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