LIC, India’s largest insurance company, has increased its stake in one of the major integrated chemical manufacturers to 5.117 percent.
Atul Ltd is a Mid-cap stock with a market capitalization of Rs 20,090 crore, while the company has delivered multibagger returns of 102 percent in the last five years.
According to LIC’s Exchange filing, the Insurance company has increased its shareholding in “ATUL Limited” from 14,74,172 to 15,09,793 Equity Shares, increasing its shareholding from 4.997 percent to 5.117 percent of the paid-up capital.
Life Insurance Corporation (LIC) is the largest insurance provider company in India. It has a market share of above 66.2 percent in new business premiums.
The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
The company’s revenues have declined by 20 percent year on year from Rs 1,487 crore in Q2FY23 to Rs 1,193 crore in Q2FY24, while net profit fell by 39 percent in the same period, from Rs 146 crore to Rs 89 crore.
Atul Ltd is a diversified and integrated Indian chemical company. The products of the company are used in various Industries and come mainly under two segments, Life Science Chemicals and Performance and Other Chemicals.
Atul Ltd is the largest manufacturer of para Cresol, para Anisic aldehyde, and para Anisic alcohol in the world as well as the largest manufacturer of 3,3’-Diaminodiphenyl sulfone and 4,4’-Diaminodiphenyl sulfone.
In fiscal year 22-23, India accounted for 50 percent of revenues, followed by 12 percent from Europe, 13 percent from North America, and 20-5 from Asia (without India).
In the September quarter, the firm grew its non-current assets primarily owing to the completion of significant projects and an increase in the valuation of long-term investments, while increasing its liquid cash balance by Rs 100 crore despite CapEx spending through better working capital management.
Atul Ltd manufactures 900 products and 400 formulations, while the company serves 4,000 customers in 83 countries and owns 140 brands.
Written by Omkar Chitnis
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