LIC : Life Insurance Corporation of India decreases shareholding in this company, Is now the time to sell this mutlibagger stock?

LIC : Life Insurance Corporation of India decreases shareholding in this company, Is now the time to sell this mutlibagger stock?

Rakesh Deshmukh

Check instantly company’s operating loss widens in the June quarter, ROCE and ROE are also negative

The Life Insurance Corporation of India informed in its latest exchange filing reported on August 18, 2023, that the company has reduced its stake in the company named 'TIL Limited.

TIL Limited specializes in the production and promotion of an extensive array of solutions for material handling, lifting, port, and road construction. These offerings come with seamless customer support and post-sales services.

We would like to bring to your attention that the shareholding of the Corporation in "TIL LTD." has undergone a reduction, with the number of equity shares decreasing from 8,10,038 to 5,96,195. This adjustment results in a decrease in the Corporation's shareholding from 8.076 per cent to 5.944 per cent of the total paid-up capital of the company," said LIC India.

The current market capitalization of TIL Ltd is Rs 271 crore. It's 52-week high and low prices are Rs 287.25 and Rs 82.45, respectively. The company's shares opened the day at Rs 274.30, reached an intraday high and low of Rs 274.30 and Rs 270, respectively, and closed the day at Rs 270 each on the BSE.

The company's shares have delivered an impressive return of 105 per cent in just three months, and over the past year, they have generated a significant return of 160 per cent.

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The company released its June quarter results on August 14. The revenue from operations saw a YoY decline of 77per cent, decreasing from Rs 15.35 crore to Rs 3.46 crore. The operating loss of the company widened from Rs 16.65 crore to Rs 18.08 crore. Additionally, on a sequential basis, operating loss increased from Rs 13.5 crore to Rs 18.08 crore.

In contrast, the net profit of the company reached Rs 0.95 crore. This is a notable improvement compared to a net loss during the corresponding period last year, thanks to other income reported by the company in the recent quarter.

Currently, the company's return on capital employed (ROCE) and return on equity (ROE) are negative.

After reading this article, what would you do or what actions would you take? Let us know in the comment section.

 

Disclaimer: This article is for informational purposes only and not investment advice.

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