Top 5 smallcap stocks held by LIC. Are they worth a look?
top penny stock picks and the top microcap stock picks of India's biggest insurer Life Insurance Corp (LIC). Today, let's go over LIC's top small-cap holdings, further broadening our search for these smaller market players. Investing in small-cap stocks can be a lot like searching for hidden gems in the market.
These companies, often overlooked by mainstream investors, can hold significant growth potential. Here are the top 5 small-cap stocks that make up a significant holding of LIC’s portfolio. First on the list is NMDC Steel, the recently demerged entity of NMDC.
NMDC Steel’s product mix consists of low carbon steel, HSLA & dual phase steel, and API quality steel that can be rolled into thickness range from 1 mm to 16 mm. With its capability to roll 1,650 mm wide HR, the thin slab caster at Nagarnar Steel plant is the widest mill in the public sector. The company owns and operates the state-of-the-art 3.0 MTPA steel plant at Nagarnar, Chhattisgarh.
The steel plant was built at a cost of ₹240 billion (bn). As of June 2023, Life Insurance Corp (LIC) held 14.2% stake in the company. Considering the current market price of ₹51.43, the insurance company’s exposure in NMDC Steel comes to ₹21.3 bn.
Since its listing in February this year, NMDC Steel share price has moved up quite significantly and is up around 90% in less than 7 months. The stock is now trading very close to its book value of ₹58.2. The recent rally in the steel stock could be attributed to the company’s steel plant achieving a new milestone of producing hot-rolled coil from hot metal in just nine days.
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