Life Insurance Corp or LIC stands as a leading institutional investor investing in different public and private companies in India. Through its strategic investments, the company has cropped up significant shares in various profit-making companies like RVNL, ICICI Bank, NTPC, Larsen and Turbo, etc. Out of all the investments, Rail Vikas Nigam Ltd, or RVNL serves as one of the best and most digit investments that LIC has made. The following article explores RVNL and various other investments that LIC has made in various companies across diverse sectors.
Rail Vikas Nigam Limited
RVNL is a leading government-owned enterprise that is engaged in Railway-based projects like railway electrification, station modernization, and laying of new railway lines. Strong order book, government support, future growth potential as well a positive increase in both sales and profits are the key aspects that make RVNL a great investment by LIC. Moreover, strong cash flow from investment into RVNL has led to an increase in the LIC share price. With a great focus on infrastructure-based investments, LIC believes in the future growth potential of RVNL.
State Bank of India
Serving as a leading public sector bank, the State Bank of India is one of the top investments that LIC has made in the banking and finance sector. The company is known for its positive loan and deposit growth, stable outlook in the long run, robust market share, and fewer NPAs. LIC believes in the growth trajectory of the State Bank of India. Moreover, with stable returns, LIC has been able to generate great returns through its investment in SBI.
Reliance industries
Being a conglomerate operating across various sectors like energy, retail, and technology, Reliance Industries is one of the top companies that LIC has invested in and continues to increase its stake. With great domination in the telecommunication sector and retail consumer market, the reliance industries possess a strong holding over their competitors. With a high-growth opportunity and access to a diversified stream of revenue, LIC continues to hold a great stake in reliance industries.
ITC Ltd
Operating across various sectors like FMCG, and agriculture, ITC Ltd has been able to generate consistent returns in the form of dividends and positive stock performance for LIC. Stability, future growth potential, and a high dividend yield are the main driving forces that compel LIC to hold as well as increase its stake in ITC Ltd.
Comparison between RVNL and other investments
Out of all the investments, RVNL stands out as one of the most structured and future-proof companies that LIC has invested in. Engaged in railway infrastructure development and maintenance, the company possesses a strong and positive growth outlook. Diversified revenue streams, access to Railway development infrastructure projects, and support from the government in the modernization of the railway sector are the key aspects that make RVNL a great investment in the overall portfolio of LIC. With an increase in the RVNL share price of 1,138% over the past 3 years, LIC has been able to generate significant returns as compared to other investments. Moreover, investment into a government-owned enterprise delivers greater stability and protection to the returns that LIC aims to generate over the long term.
Conclusion
RVNL therefore serves as one of the most prestigious companies in India that is engaged in infrastructure development and possesses great potential to generate future returns. Investment into RVNL by LIC is a testament to its ability to grow further in terms of both share price and financially. Out of various investments, RVNL dominates the LIC’s investment portfolio for the stability and growth it offers at the same time.