List of Top 30 Stocks where LIC made a profit of 10,000 Crores from Equity Portfolio

List of 30 Stocks where LIC invested and made a profit of 10,000 Crores from Equity PortfolioList of Top 30 Stocks where LIC made a profit of 10,000 Crores from Equity Portfolio


Investors would always struggle to make money from stock market. Investing in right stock is always a challenge. LIC has announced that it made Rs 10,000 Crores profit from the stock market in the last 4.5 months from equity portfolio. While the investment also could be high, many of us including me are curious to know which stocks did LIC invest which has given such superior profits in last 4.5 months. In this article we would provide the list of top stocks where LIC has invested and where it made Rs 10,000 Crores profits from 1-Apr-2020 to till date. We would also views what lessons we can learn from such an investment strategy.

Also Read: LIC Jeevan Akshay 7 Annuity Plan – Should you opt?

LIC statement about Rs 10,000 Crores profits from equity stock market

Few days back, LIC Chairman Mr.M R Kumar informed that LIC has made Rs 10,000 Crores profits from 1-Apr-20 to till date in equity portfolio. Mr. Kumar said “I cannot give the figures and we were only buying during lockdown. We hardly offloaded stocks”.  Many of us might be curious to know where exactly LIC would have invested that it got such huge profits.

List of 30 Stocks where LIC invested and made a profit of 10,000 Crores from Equity Portfolio

Here is the list of stocks LIC were investing as on 1-Apr-2020 and their current market prices and profits thereof. Let us see some highlights.

1) There were three stocks where it made profits between 300% to 773%. Alok industries (773%), Ballarpur Industries (414%) and GTL Infra (300%).

2) Out of these 30 stocks, only one stock is where the returns are 87%, but all other stocks gave above 100% returns in the last 4.5 months.

3) Surprisingly, there are several penny stocks also that LIC has invested. Either it could be that they invested earlier and they became penny stocks or either it could have intentionally invested in penny stocks. Out of 30 stocks listed here, 13 stocks are penny stocks (< Rs 10 as on 1-Apr-20).

4) It invested in low value stocks like Reliance ADAG (Reliance Infra, Reliance Comm, Reliance Power, Reliance Capital etc.). Hower, such low value stocks gave returns between 127% to 292% in the last 4.5 months.

5)  Another surprising thing it it did not have NIFTY 50 stocks in its top 30 stocks (may be these are over and above top 30) portfolio where it earned high profits.

Also read: Best Pharma Mutual Funds to invest in 2020

Here are the stock prices as on April 1, 2020 and as of now

Stock01-Apr-2025-Aug-20Increase %
Alok Industries4.135.8773%
Ballarpur industries0.41.8414%
GTL Infra0.20.8300%
Reliance comm0.72.6292%
Jaiprakash Associaties1.14.1273%
Digjam0.93.0253%
Rolta India2.26.7202%
Reliance Home finance0.82.2187%
Dalmia Bharat Sugar50.7145.0186%
reliance Power1.33.7185%
Fiberweb11.531.6175%
Orissa Mineral Development corp983.02,649.0169%
Sterlite Technologies63.0166.0163%
Paisalo digital170.0445.0162%
Morepen labs9.725.3161%
Uflex139.0352.0153%
Cox and Kings0.61.5150%
Reliance Infra10.726.6149%
IRB Infra51.0126.0147%
Binny Ltd59.0141.0139%
Glenmark Pharma204.0485.0138%
Bharat Dynamics184.0427.0132%
Reliance Capital4.510.2127%
Wanbury18.742.0125%
Kesoram Industries19.342.9122%
IDBI Bank19.042.0121%
Hindustan Aeronatics533.01,171.0120%
Binny mills ltd41.087.0112%
Premier Ltd1.42.8107%
Welspun61.0114.087%

What lessons we can learn from LIC making such nice profits?


Here are some of the lessons:

1) LIC chairman, said it has continued to invest during the lockdown period. During that period, the stock market has crashed and many stocks were available at cheap valuations. One should always encash such opportunities when such huge stock market corrections are happening.

2) LIC also indicated that they hardly offloaded stocks. Investors general tendency is to sell stocks when stock markets are taking huge beating and buy when stock markets are rising. What LIC did is the exact strategy that an ideal investor is supposed to do.

3) Its top 30 stocks where it made high profits at the stock level (irrespective of quantum of profit) have non NIFTY50 stocks. While NIFTY50 stocks make profits, in recovery phase, midcap stocks and small cap stocks tend to move faster than large cap stocks. Some experts argue that investing in midcap and smallcap stocks is a high risk, hence we should stay away when stock markets are falling or in the recovery stage (where we can’t predict whether it can fall further or recover). It invested in penny stocks too. While my view is not to suggest to invest in penny stocks, one can always look at midcap or small cap stocks which could be multibaggers in medium to long run.

This article is not a recommendation to buy any of the above stocks. It is only an analysis as to how LIC made such huge profits and what lessons one can learn from their strategies. The data might not be 100% complete as we considered only top 30 stocks based on increase in stock prices and not based on profit volume.

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Suresh KP

10 comments

  • Kumaresh Bapu T R

    Dear Mr. Suresh,
    Just started reading your analysis and it is really appreciated. Gaining some knowledge. Can you pls give me some hints about the performance of Indusind bank?

    • Hello Kumaresh, Even I started tracking Indusind bank in the last 2-3 weeks. This is the stock that has not raised in share price as much as other banks, hence was doing more analysis on this. Would keep you posted

  • Raj

    thanks for this article. As usual your articles are always informative and feels happy to read.
    LIC did correct strategy to invest when market crashed and market crash happens very very rare occasion which LIC encashed properly . Also LIC has enough capacity to take high risk hence we cannot follow their strategy investing in penny stocks. They single handedly can make penny stock up or down such huge capacity they have.
    But one lesson we can learn from LIC how they invested in and at right time. Warren buffet also says same thing when market is at all time high you need to be panic in buying when market is at all time low you need to be greedy to buy. But when this kind of opportunity comes many retail investors knowing this concept still do other way and end up in loss. It requires great deal of patience and courage to enter in bear market. Only few does that.

  • RAVEE S

    One more article which was a fine one from you Sir.
    Thanks for the effort and information sharing.

  • V Ravindran

    The article gives an impression that LIC purchased these stocks on or after 1st Apr 2020, which may not be the case. These stocks (most of them penny stocks, NCLT cases, sick units, etc) would have been acquired by LIC as an investor quite sometime back and there would already be a book-loss; it might have made some meagre book-profit out of a massive book-loss, between these dates. There is an investment committee and definitely no investment committee would have given approval to buy cox & kings at 0.60.

    Please do not go by what LIC has done as per this article. This is not at all possible. As a prudent investor, one should know the company and its business (not for one year or two years) before buying shares of the company.

    • Hello Ravindran, We never said they brought it on 1st April. We said they were investing as on 1st April (as the chairman word itself was comparing only this financial year i.e. 1st April to till date). Regg Cox and kings example, pls read my article. They would have invested at high price and it would have fallen later. Now it could have revived it. Hence it is not that LIC is investing in penny stocks.

  • SURAJ SHETTY

    Dear Suresh.
    Had observed another interesting movement.
    While all stocks during phase of lockdown, RUCHI SOYA enjoyed a continuous run of Circuit-breaking price moves everyday… Starting from Rs3/ to around Rs. 400/ odd.

    It would be interesting for you to study this particular companys rise and enlighten us (especially after being taken over by Patanjali).

    Regards

    Suraj Shetty
    Delhi

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