YES Bank, Tata Motors, Tata Power, Reliance Power, LIC: How these 5 retail favourite shares fared?
YES Bank Ltd, Tata Motors Ltd, Tata Power, Reliance Power Ltd and Life Insurance Corporation of India Ltd (LIC) were five companies with the highest number of retail investors, as of December 31. Among these companies, shares of Reliance Power and YES Bank are in a bear grip, having fallen over 20 per cent so far this calendar. LIC shares have fallen in double digits; Tata Power is flat and Tata Motors has delivered double digit returns in 2023 so far.
YES Bank had the highest number of retail investors at 47.28 lakh as of December 31. These were the shareholders, who held up to Rs 2 lakh worth of shares in the private lender.
YES Bank stock has fallen 22 per cent so far this year, thanks to concerns that key shareholder SBI may cut stake in YES Bank post the three-year lock-in expiry this month. Analysts largely have ‘hold’ or ‘sell’ rating on this stock. ICICIdirect said YES Bank has witnessed a gradual improvement in business growth as well as asset quality in the last six quarters. It expects higher advance growth and felt margin improvement may enable the bank to improve its return on asset to 0.9-1 per cent in FY25. That said, it sees earnings could remain volatile on a quarterly basis.
Tata Motors had the second highest number of retail investors at 39.30 lakhs. This stock has risen 11.44 per cent in 2023 so far. Motilal Oswal said a strong recovery in JLR, sustained resurgence of the India business, and a possible monetisation of its stake in Tata Technologies are the key catalysts for the stock over the next one year. It has a target of Rs 540 on the stock. Kotak Institutional Equities has a target of Rs 450 on the stock. Prabhudas Lilladher sees it at Rs 520 while JM Financial finds it Rs 575 worthy.
Shares of Tata Power have slipped 1 per cent so far this year against a 21.60 per cent drop in the BSE Power index during the same period. Tata Power had 37.97 lakh retail shareholders, as of December 31. Anand Rathi in a February 16 note said Tata Power continues to move towards its long-term aspiration built on businesses of the future while maintaining a healthy balance sheet.
“This is clearly visible from the improvement seen in the operational and financial metrics in each passing quarter. With rapidly growing generation capacity at its disposal, strengthened focus on EV and renewables businesses, we expect the company’s performance to improve from current levels. We upgrade our rating on the stock to BUY with a revised target price of Rs 256,” it said. Elara Securities has a target of Rs 272 on the stock.
Life Insurance Corporation of India (LIC), which had 34.99 retail shareholders, tanked 13.88 per cent in 2023 so far. A continued market share loss and sticky high cost leading to inferior EV compounding remain key concerns for LIC, said analysts.
“Given its large back book and surplus sitting in the non-par book, LIC has started to deliver strong accounting profit. However, at the same time, there is very little value creation from the new business and the sustained market share loss in retail business continues. With 1.8 per cent of retail APE coming from more than Rs 5 lakh annual premium, LIC is better positioned when it comes to 10(10D)-related proposed changes in the Union Budget. However, the nudge towards the exemption-less new tax regime could pose a challenge for LIC,” Emkay said in a note.
Reliance Power, meanwhile, had 34.99 lakh retail shareholders. This stock is down 27 per cent this year.
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