Upper circuit alert: Government of India-backed stock gains Rs 48,99,84,00,000 in a single day—emerging as a multibagger leader in its segment; scrip hits 52-week high with a record delivery quantity

The company's trailing twelve months price-to-earnings (TTM PE) ratio stands at 36.4, which is below the industry median.

On Friday, the Indian benchmark indices experienced a lackluster performance, notably observed in the NSE benchmark Nifty 50 index, which recorded a daily range of just 64 points—the lowest since the Muhurat Trading session and below the 10-day average daily range. Although the Nifty closed just below the 19,800 mark, the market showcased stock-specific action, with sectors like Nifty Pharma and Metal buzzing with activity.

Amidst this, the insurance stocks drew special attention, with New India Assurance Company Ltd emerging as a showstopper. The stock was locked at the upper circuit limit and reached a 52-week high of Rs 209.40. Notably, the stock recorded its highest-ever daily volume since its listing day, with a total trade volume on NSE reaching 3.49 crore—a tenfold increase compared to its 30-day average daily volume.

Delving into the specifics, New India Assurance Company is India's largest non-life insurance company, primarily owned by the Government of India, holding an 85.44 per cent stake. This translates to 1,408,000,000 shares of the company in the name of the President of India. With the stock gaining Rs 34.80 per share on Friday, the total value for the day amounted to an astounding Rs 48,99,84,00,000.

Remarkably, the company has surpassed a market cap of 34,000 crores, marking a significant journey from its 52-week low of Rs 94.6, demonstrating a multibagger performance with a remarkable 116.8 per cent increase.

The company's trailing twelve months price-to-earnings (TTM PE) ratio stands at 36.4, which is below the industry median. Despite facing challenges in Q2FY24, including CAT losses due to floods and adverse developments in the aviation portfolio, the company witnessed growth in the Motor and Health portfolios. The foreign operations reported losses, but the company anticipates improved results in the coming quarters, particularly with positive trends in the agency channel and expectations of enhanced profitability in key portfolios.

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