LIC elevated its stake in 54 listed corporations in the course of the quarter, reflecting a calibrated and sectoral strategy to navigating market volatility. Nonetheless, it additionally trimmed its stakes in one other 64 corporations on a sequential foundation, a Mint evaluation of two,945 BSE-listed corporations which have disclosed their shareholdings for the quarter revealed.
This comes after LIC participated in State Financial institution of India’s ₹5000-crore certified institutional placement (QIP) on 21 July, elevating its stake from 9.21% to 9.49%.
The evaluation additionally confirmed LIC had holdings of greater than 1% in 232 corporations —practically 8% of all listed corporations—in Q1FY25. Of those, it elevated its holdings in roughly one out of each 4, signalling a strategic accumulation spree throughout sectors equivalent to FMCG, chemical compounds, auto parts, engineering and metals.
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“LIC’s investments in mid to massive caps throughout various sectors validate the broader India progress story past simply finance or infra. This transfer can appeal to international gamers and draw retail curiosity to newer mid-cap names. With LIC setting the development, different establishments and long-term traders could comply with,” stated Kush Gupta, director at SKG Funding & Advisor.
The 5 corporations during which LIC raised its shareholding probably the most had been Patanjali MealsShyam Metalics, Bharat Forge, Gujarat Fluorochemicalsand Havells India. These investments level to a broader shift in LIC’s portfolio technique—one centered much less on momentum and extra on deep-value and conviction performs.
Patanjali Meals: Swimming towards the tide
In 1 / 4 during which international and retail traders lower their positions in Patanjali Meals (PFL), a number one FMCG and edible oil firm, LIC took a markedly contrarian strategy, elevating its stake by 1.48 share factors to 9.14%. FPIs marginally trimmed their holdings by 3 share factors to 0.21%, whereas people (holding nominal share capital as much as ₹2 lakh) slashed theirs by 55 foundation factors (bps) to 2.62%. Mutual funds, nevertheless, aligned with LIC’s stance, mountaineering their publicity by 1.29 bps to 1.72% sequentially in the course of the quarter.
This institutional shopping for got here regardless of the inventory falling 8.7% in Q1. The corporate’s trailing price-to-earnings ratio of 53x additionally stays beneath its five-year median of 60x, indicating doable valuation consolation for long-term gamers. Whereas the corporate’s edible oil gross sales surged 21% year-on-year in Q4FY25 as a result of value hikes, the meals & FMCG phase declined 16.6% owing to subdued city demand and seasonal weak point.
“To revive progress, PFL is increasing its retail attain, concentrating on ethnic meals, and scaling direct distribution to 4 million shops,” famous ULJK Analysis, sustaining a ‘purchase’ ranking and forecasting a ten% compound annual progress in income over FY25-27.
Shyam Metalics: A contrarian metals play
LIC’s aggressive funding in Shyam Metalics and Power (SMEL), a serious producer of metal and ferro alloys, was one other contrarian transfer. The insurance coverage behemoth raised its stake by 1.01 share factors to five.47% sequentially in the course of the quarter whilst FPIs decreased their holdings by 3.37 bps to only 0.64%. Retail possession fell by 29 bps.
Regardless of delivering solely a 2% return in Q1, LIC’s guess might sign a long-term view on India’s industrial steel cycle. At 28x trailing P/E, the inventory trades considerably above its five-year median of 13.7x. But analysts consider the premium could also be justified by sturdy fundamentals and infrastructure-led progress.
“Home demand for ferro alloys and structural metal stays strong, supported by the federal government’s infra push,” stated Harshal Dasani, enterprise head at INVasset PMS. “LIC’s elevated holding displays a robust perception in SMEL’s long-term fundamentals.”
In Q1FY26, SMEL reported Ebitda of ₹633.2 crore, surpassing Bloomberg’s projections. The corporate has earmarked ₹2,000 crore in capex for FY26 and is concentrating on ₹1,300-1,400 crore in income from its chrome steel phase. Having already invested ₹6,600 crore, it’s making regular progress towards its ₹10,000 crore growth highway map, stated JM Monetary.
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Bharat Forge: Realignment in defence and EV play
LIC elevated its stake In Bharat Forge, a key participant in auto parts and defence tools, by 91 bps to 4.95% whilst FPIs pared their publicity by 1.66 share factors. Mutual funds and retail traders elevated their holdings by 44 bps and 31 bps, respectively, suggesting a broader realignment amongst home traders.
The inventory delivered a 12% return in Q1 however trades at a trailing P/E of 60.5x—beneath its five-year common of 66x. Whereas international brokerages have turned cautious, citing weak visibility in industrial automobiles and export markets, others stay bullish.
JP Morgan downgraded the inventory to ‘impartial’, flagging a 20% decline in US class 8 truck manufacturing in 2025 and lacklustre demand in India. Income progress is seen at simply 2% in FY26, with a restoration probably solely in FY27. However LIC seems to be taking part in the lengthy recreation.
“With inventory correcting round 40% from its peak and with a sturdy order e book and increasing presence in defence, aerospace, and electronics, Bharat Forge stays well-positioned for long-term worth creation,” ICICI Direct stated, sustaining a ‘purchase’ ranking.
Gujarat Fluorochemicals: Clear-tech conviction
Regardless of broad-based promoting, LIC raised its stake in Gujarat Fluorochemicals, a specialty chemical producer, by 85 bps sequentially to three.1% in the course of the quarter. In distinction, international portfolio traders, mutual funds and retail shareholders trimmed their holdings by 38 bps, 21 bps and 17 bps, respectively. Even because the inventory posted a detrimental 9.7% return within the quarter and trades at a steep trailing P/E of 72x—nicely above the five-year median of 40x—LIC’s conviction within the firm’s long-term prospects stays intact.
Dasani famous that LIC’s transfer probably mirrored religion within the firm’s management in high-performance fluoropolymers and refrigerant gases. “These strikes seem much less about short-term sector rotation and extra about valuation consolation and early-cycle accumulation,” he stated.
JM Monetary has initiated protection with a ‘maintain’ ranking, citing execution dangers at stretched valuations, whilst battery chemical compounds supply long-term promise.
Havells India: Regular build-up in consumption
LIC additionally elevated its stake in Havells India, a shopper electrical and home equipment agency, by 84 foundation factors to five.27%. Mutual funds and retail traders adopted swimsuit with 12 bps and 4 bps hikes, whereas FPIs exited marginally. With a muted Q1 return of 1.5%, the inventory stays a proxy for India’s city consumption restoration.
In Q1FY26 income declined 6% year-on-year, primarily as a result of a pointy drop in summer-oriented classes equivalent to electrical shopper durables (ECD), which fell 14.1%, and Lloyd’s equipment portfolio—largely air conditioners and cooling merchandise—which plunged 34.4%.
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Nonetheless, infrastructure-driven segments like switchgears and wires confirmed resilience, rising 9.3% and 27.1%, respectively, famous Sure Securities. The brokerage upgraded the inventory to ‘add’ whereas retaining its 50x valuation a number of.
“With institutional shopping for turning inward, market cycles could grow to be much less depending on FPI threat urge for food,” stated Dasani. “LIC’s conviction might act as a confidence sign—marking a refined but vital change in India’s capital market dynamics.”