LIC Net Equity Buys Reach ₹19,400 Crore in Q3 FY25; Key Additions Include Hyundai Motor, NTPC Green Energy, Maruti Suzuki
Life Insurance Corporation of India (LIC), the country’s largest institutional investor, made a strong push in the stock market during the third quarter of FY25, recording net equity purchases worth ₹19,400 crore. This marks an increase from the ₹18,094 crore invested in the previous quarter, though lower than the ₹23,516 crore in Q1.
With a significant portfolio reshuffle, corporation added new stocks and increased its stake in several key companies, while also trimming holdings in others.
LIC’s Expanding Investment Portfolio
corporation’s investment strategy remains aggressive despite ongoing market corrections. As of December 31, 2024, the insurance giant’s total equity portfolio stood at ₹15.29 lakh crore, reflecting a decline from ₹16.76 lakh crore at the end of Q2 due to broader market fluctuations.
During Q3, LIC made notable fresh investments in Hyundai Motor India, NTPC Green Energy, Cochin Shipyard, Ramkrishna Forgings, RBL Bank, and OCCL Ltd. Simultaneously, it increased its stake in 81 existing stocks while reducing holdings in 87 others and completely exiting eight companies.
Top Portfolio Additions
LIC’s major stock purchases during Q3 include:
- Maruti Suzuki – ₹2,913 crore
- Nestle India – ₹2,774 crore
- Procter & Gamble Hygiene – ₹2,021 crore
- NMDC – ₹2,006 crore
- Reliance Industries (RIL) – ₹1,810 crore
- Hindustan Zinc – ₹1,646 crore
Stocks Where LIC Trimmed Its Stake
While LIC was bullish on select stocks, it also cut exposure in some high-profile companies, including:
- Tata Power – ₹1,931 crore
- Infosys – ₹1,712 crore
- HCL Technologies – ₹1,600 crore
- TCS, Divi’s Lab, ICICI Bank, Sun Pharma, and Vedanta
Full Exits and Reduced Holdings
LIC either fully exited or significantly reduced its stake (below 1%) in:
- HPCL
- Rajesh Exports
- Siemens
- Shriram Finance
- Jet Airways
- Strides Pharma
- Gujarat Industries Power
- Bombay Dyeing
Institutional Investors’ Influence in Q3
LIC’s substantial buying activity aligns with the strong domestic institutional investor (DII) participation in the market. DIIs poured in ₹1.86 lakh crore in Q3, countering the ₹11,788 crore worth of shares sold by foreign institutional investors (FIIs).
So far in 2025, the trend has continued, with FIIs being net sellers at ₹85,369 crore, while DIIs have invested nearly ₹94,000 crore, as per provisional data from stock exchanges.
Key Financial Ratios of LIC
Below is a snapshot of LIC’s key financial metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹5,02,521 Cr. |
| Current Price | ₹794 |
| 52-Week High/Low | ₹1,222 / 794 |
| Stock P/E | 11.6 |
| Book Value | ₹0.00 |
| Dividend Yield | 1.24% |
| Return on Capital Employed (ROCE) | 73.0% |
| Return on Equity (ROE) | 63.4% |
| Debt to Equity Ratio | 0.00 |
| Industry P/E | 48.1 |
| Debt | ₹0.00 Cr. |
| PEG Ratio | 0.16 |
| Piotroski Score | 6.00 |
| Return on Invested Capital (ROIC) | 26.6% |
Conclusion
LIC’s investment decisions continue to shape the Indian stock market, reinforcing its role as a key market stabilizer. With a balanced mix of fresh investments, stake increases, and exits, LIC is positioning itself for long-term growth despite market fluctuations.
As the trends in DII and FII investments unfold in 2025, LIC’s strategic moves will remain crucial for market participants and retail investors alike.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.