zerodha top banner 2

The Life Insurance Corporation of India (LIC) disclosed that it has decreased its stake in Bajaj Auto from 7.203% to 5.200%. Following this, the shares of Bajaj Auto were trading at ₹ 3561.00 apiece, down 1.17% at 11:33 AM on the National Stock Exchange (NSE). 

5paisa Basket Order

LIC sold 56,68,366 shares, or 2.003% equity, at an average cost of Rs 4,069.65 via open market transactions during the period from 3 November 2022 to 16 November 2022. 

Bajaj Auto is the flagship company of the Bajaj Group. It manufactures two-wheelers and three-wheelers. Headquartered in Pune, India, the company has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers. 

It commands a market capitalization of ₹ 1,04,529 crore. Its shares were trading at a price-to-equity ratio (P/E) of 18.24, which is higher than the industry P/E of 12.06. The company has an ideal return on equity of 21.58%. 

LIC on the other hand is an insurance behemoth. It has been providing life insurance In India for over 65 years and has a market share of over 66% in new business premiums. It debuted on the bourses on 17 May 2022 and was India’s biggest IPO. 

The state-owned insurer has a market capitalization of 4,07,235 Crore. It has an excellent return on equity of 45.27% and an ideal debt-to-equity ratio of 0.00. Its shares were trading at a price-to-equity ratio (P/E) of 104, which is higher than the industry P/E of 10.23, therefore, its shares might be overvalued. 

Written by Simran Bafna 


The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

To stay updated with the Latest Stock Market news, download our app here!

For editorial purposes, contact news@tradebrains.in

Start Your Financial Learning Journey

Want to learn Stock Market and other Financial Products? Make sure to check out, FinGrad, the learning initiative by Trade Brains. Click here to Register today to Start your 3-Day FREE Trail. And do not miss out on the Introductory Offer!!