LIC Portfolio: Auto Stock to Watch After LIC Reduced Its Stake by 2%

Synopsis: LIC has reduced its stake in this auto giant from 7.14% to 5.14% through open market sales between July 2024 and May 2026, reflecting routine portfolio rebalancing while retaining a significant holding in the two-wheeler maker.

The shares of this company are one of India’s largest two-wheeler manufacturers and one of the world’s leading motorcycle and scooter producers are in the spotlight after  India’s Biggest Insurer reduced its stake in the company.

With a market capitalisation of Rs. 95,946 cr, the shares of Hero MotoCorp Ltd were trading at Rs. 4795.10 per share, down from its previous close of Rs. 4,898.40 per share. Over the past year, NCC’s stock has delivered a 13% return to investors. However, the stock has witnessed weakness in recent periods, declining 18% on a year-to-date basis, 24% over the last six months, and 5.5% in the past month.

What’s the News

Life Insurance Corporation of India (LIC), the country’s largest institutional investor, has reduced its stake in Hero MotoCorp through a series of open market transactions conducted between July 2024 and May 2026. The stake sale reflects LIC’s portfolio management strategy, under which institutional investors periodically rebalance their holdings based on market conditions, valuation considerations, and investment objectives.

Prior to the divestment, LIC held a 7.14% stake in Hero MotoCorp, amounting to approximately 14.29 lakh shares of the company. Following the sale of shares in multiple transactions, LIC’s ownership declined by 2 percent bringing its holding down to 5.14% as of May 27, 2026. Despite the reduction, LIC continues to remain a significant shareholder in the two-wheeler manufacturer.

The stake sale involved the disposal of more than 4 lakh shares through the open market. As a result, LIC’s holding has moved closer to the important 5% ownership threshold, a level often monitored by investors and regulators because shareholding changes around this mark can influence disclosure requirements and indicate shifts in institutional investment positions.

Hero MotoCorp remains one of India’s leading two-wheeler manufacturers, and LIC’s decision to pare its stake does not necessarily indicate a negative outlook on the company. Such transactions are common among large institutional investors and are often undertaken to optimise portfolio allocation, book profits, or adjust exposure to specific sectors and companies. Investors will continue to monitor LIC’s future shareholding disclosures and Hero MotoCorp’s business performance for further indications of institutional sentiment.

About the company 

Hero MotoCorp Ltd is one of India’s largest two-wheeler manufacturers and one of the world’s leading motorcycle and scooter producers. The company offers a wide range of motorcycles and scooters catering to both domestic and international markets. Known for its strong brand presence, extensive distribution network, and focus on innovation, Hero MotoCorp serves millions of customers across Asia, Africa, and Latin America.

For Q4FY26, the company reported a strong financial performance, with revenue rising 30% year-on-year to Rs. 12,978 crore from Rs. 9,970 crore in the corresponding quarter last year. The company’s EBITDA increased 30% to Rs. 1,870 crore from Rs. 1,441 crore, reflecting improved operational efficiency. Net profit grew 26% to Rs. 1,474 crore compared to Rs. 1,169 crore a year ago, while earnings per share (EPS) climbed 26% to Rs. 72.97 from Rs. 58.06. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited 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.

The post LIC Portfolio: Auto Stock to Watch After LIC Reduced Its Stake by 2% appeared first on Trade Brains.