Life Insurance Corporation of India (LIC), the country’s biggest institutional investors, managed to get a handsome return from select smallcap and midcap stocks for the financial year ended March 31, 2023. The year gone by stood highly volatile for the domestic equity market due to the ongoing war between Russia and Ukraine, a hike in global interest rates and outflows by overseas investors, among others. However, at the time when the BSE Sensex closed the year with a marginal gain of nearly 1 per cent, a couple of smallcaps in the insurance major’s portfolio gained up to 160 per cent in the past 12 months. Below is the list of the major smallcap and midcap stocks that delivered robust alpha to the insurance major.
Kirloskar Electric Company
Kirloskar Electric Company emerged as the top performer in the portfolio. The scrip surged 160 per cent to Rs 68.14 on March 31, 2023 from Rs 26.15 a year ago. As on December 2022, LIC holds a 1.26 per cent equity stake in Kirloskar Electric. The company’s market valuation was at Rs 452.5 crore on March 31, 2023.
The Karnataka Bank
The Karnataka Bank is the next on the list. Shares of the lender advanced 146 per cent in FY23. The scrip increased to Rs 136 from Rs 55.4 in the past 12 months. LIC held a 4.67 per cent stake in the bank as of December 2022.
Standard Industries
LIC had a 1.27 per cent stake in this textile manufacturing company. At the current market valuation of Rs 166.5 crore, this stock has surged 115 per cent to Rs 25.9 on March 31, 2023 from Rs 12 on the same day a year ago.
Rail Vikas Nigam (RVNL)
LIC held a 6.38 per cent ownership in the infrastructure PSU for the quarter ended December 2022. Shares of RVNL have gained 110 per cent in a year to Rs 68.6 from Rs 32.7 since March 31, 2022.
UCO Bank
This PSU bank gained 105 per cent in the last financial year. The stock jumped to Rs 24.38 from Rs 11.87 in FY23. The market capitalisation of UCO Bank stood at Rs 29,148 crore on March 31, 2022. LIC had a 1.24 per cent stake in the bank as of December 31, 2022.
Some other top performers in the LIC’s portfolio from midcap and smallcap space includes The South Indian Bank (up 94 per cent), Indian Bank (up 87 per cent), Chennai Petroleum (up 86 per cent), Hindustan Aeronautics (up 84 per cent), Bharat Dynamics (up 81 per cent) and The Phosphate Company (up 80 per cent) during the FY23.
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