LIC said it upped stake in Tata Power by 2.08 percentage points from April 25, 2019, to May 24, 2023. The average cost of shares acquired stood at Rs 234.02 Life Insurance Corporation of India (LIC) on Thursday informed stock exchanges that the life insurer has increased its holding in two stocks namely Tata Power and Bata India. In Tata Power, LIC upped its holding to 25,35,37,551 shares or 7.935 per cent of the paid-up capital from 24,01,67,154 shares or 7.52 per cent stake at the end of March quarter. In April 2019, LIC held 18,90,70,215 shares or 5.917 per cent stake in Tata Power, the insurer told exchanges.
Besides, LIC said its shareholding in Bata India increased to 83,95,740 shares or 6.532 per cent stake from 64,36,692 shares or 5.01 per cent stake as on March 31. LIC held 57,80,329 shares or 4.497 per cent stake in Bata India as on March 15, 2023.
LIC said it upped stake in Tata Power Ltd by 2.08 percentage points between April 2019 and May 2023. The average cost of shares acquired stood at Rs 234.02. For Bata India, the average cost of shares bought stood at Rs 1,433.54 between March 15 and May 24.
"Tata Power continues to steadily 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 maintain our rating on the stock to BUY with a target price of Rs 256," Anand Rathi said.
Anand Rathi said Tata Power's net debt has reduced further by Rs 2,800 crore in the March quarter. Capex for renewables is close to Rs 2,500 crore out of a total consolidated capex of Rs 6,500 crore. Pipeline for renewables includes 26 GW, and the order book is Rs 17,000 crore, indicating higher capex for FY24, the brokerage said.
In the case of Bata India, LIC said its holdings jumped 2.035 percentage points from March 15 to May 24.
"Our thesis on Bata remains unchanged—while initiatives continue, the key to reviving durable growth is a definitive change in its perception as an aspirational brand, which is a tall ask. Incremental online/wholesale contribution may edge up growth, but is unlikely to alter its trajectory. Our estimates remain unchanged, and we value Bata at 40 times FY25E, which yields a TP of Rs 1,548," Nuvama Institutional Equities said in a note.
On Wednesday, LIC told exchange that it reduced stake in NHPC to 3.186 per cent from 5.203 per cent between October 18, 2022, and May 23. LIC said it sold NHPC shares worth an average price of 41.10.