5 LIC-Backed Midcap Stocks Flying Under the Radar. Should You Invest?

Retail investors often gravitate toward well-known stocks, the ones making headlines and trending across social media.

But beyond the buzz, there's a quieter trend worth noticing.

Life Insurance Corporation (LIC), India's largest institutional investor with over Rs 49 trillion (tn) in assets under management, has been steadily increasing its stakes in select midcap companies.

These aren't the usual market favorites, but they boast solid fundamentals, steady growth, and strong institutional backing.

Considering this, we applied a screener to identify the unnoticed midcap stocks held by LIC.

With LIC placing its bets on these under-the-radar names, it raises an important question: Are there potential opportunities hiding in plain sight?

Thus, let's have a look at five such stocks and what the future holds in store for them...

#1 NMDC Steel

First on this list is NMDC Steel.

National Mineral Development Corporation (NMDC) is a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India.

It is the single largest producer of iron ore in India. It owns and operates iron ore mines in Chhattisgarh and Karnataka.

NMDC Steel Ltd (NSL) was established as a 100% subsidiary of NMDC Ltd on 2 January 2015, with its registered office at Nagarnar, Chhattisgarh.

The company is operating a state-of-the-art 3 metric ton per annum (MTPA) steel plant at Nagarnar.

The product mix of NMDC Steel consists of low carbon steel, high-strength low-alloy (HSLA), dual phase steel, and American Petroleum Institute (API) quality steel that can be rolled into thickness range from 1-16 mm.

As of 31 March 2025, LIC holds 14% stake in the company.

NSL plans to produce special steel for generators, motors, transformers, and automotive applications. The company is focusing on long-term capacity development and downstream product integration.

It is implementing a 15 MTPA slurry pipeline and a 2 MTPA pellet plant to secure raw material supply. It has plans to extend the pipeline in collaboration with Rashtriya Ispat Nigam Ltd (RINL) and Kudremukh Iron Ore Company Ltd (KIOCL).

The government is considering divesting a 50.8% stake in NSL through a strategic sale, with interest from major players like Tata Steel, JSW Steel, and Adani Group.

Additionally, the company is focusing on improving financial health, with Rs 7 billion (bn) as free cash and Rs 21 bn as input tax credit to support operations until positive cash flows are generated.

The debt repayment is planned once capacity utilization reaches 65-70%.

To know more, check out NMDC Steel's financial factsheet and latest quarterly results.

#2 Bata India

Second on this list is Bata India.

Bata India is primarily engaged in the business of manufacturing and trading of footwear and accessories through its retail and wholesale network.

As of March 2025, the Bata Corporation holds a 50.2% stake in the company.

The company is the largest footwear retailer and leading manufacturer in the Indian footwear industry with more than 1,860 retail stores across 1,500 towns including franchisees in FY24.It has an overall retail space of 3.7 million (m) sq ft.

As of 31 March 2025, LIC holds 10.3% stake in the company.

Coming to the financials, the company's revenue has grown at a compounded average growth rate (CAGR) of 26.8% in the last three years while its net profit has grown at a CAGR of 157.1%.

The company's three-year average return on equity (RoE) and return on capital employed (RoCE) were 14.3% and 26.3%, respectively.

Bata has planned a 33% reduction in the planned product range for stores to declutter inventory. Additionally, it achieved the lowest inventory levels in eight quarters while maintaining high availability.

The company plans to expand successful initiatives (e.g., Floatz and Power) while maintaining core brand strength.

Bata is targeting 80-90% of its new stores via franchise model, focusing on tier-2/3 towns. It is also focusing on increasing premium footwear share to 34% (from 30% in recent years), with focus on casual and sneaker categories via concepts like Red Label.

Considering non-footwear growth, the company plans to expand bags, belts, and apparel, targeting a higher than 6.5% revenue contribution.

Bata plans to invest around Rs 1 bn annually to support casualization, premiumization, and an agile supply chain.

To know more, check out Bata India's financial factsheet and latest quarterly results.

#3 UTI Asset Management Company (UTI AMC)

Next on this list is UTI Asset Management Company.

UTI Asset Management Company is primarily engaged in the activities of raising funds for and to render investment management services to the schemes of UTI Mutual Fund.

It is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996.

It was the first to introduce mutual funds in India and is focused solely on investment management and related services.

As of 31 March 2025, LIC holds 9.9% stake in the company.

Coming to the financials, the company's revenue has grown at a CAGR of 12.5% in the last three years while its net profit has grown at a CAGR of 19.5%.

The company's three-year average RoE and RoCE were 14.9% and 19%, respectively.

UTI AMC is partnering with Salesforce to become a digital-first, data-driven organization using Data Cloud for personalized customer engagement.

Through its subsidiary, UTI Alternatives, UTI AMC plans to manage diverse funds, including new credit and distressed funds, and explore equity strategies.

Additionally, the company has partnered with the Open Network for Digital Commerce (ONDC) to increase mutual fund reach in smaller cities and rural areas.

It is also likely to introduce new mutual fund schemes and investment products tailored to diverse investor needs.

UTI AMC is focusing on a comprehensive product suite, including aggressive and conservative asset allocation strategies, to cater to varying risk-return profiles.

To know more, check out UTI Asset Management Company's financial factsheet and latest quarterly results.

#4 Capri Global Capital

Fourth is Capri Global Capital.

Capri Global is a diversified Non-Banking Financial Company (NBFC).

It has presence across diverse segments like micro, small and medium enterprises (MSME), affordable housing, construction finance segments, and car loan distribution.

It also forayed into gold loans in August 2022.

As of 31 March 2025, LIC holds a 9.2% stake in the company.

The company's revenue has grown at a CAGR of 45.8% in the last three years while its net profit has grown at a CAGR of 11.3%.

The company's three-year average RoE and RoCE were 6.9% and 9%, respectively.

Capri Global is planning to enter the insurance business for which it has received a corporate agency license from the Insurance Regulatory and Development Authority of India (IRDAI).

Going forward, the company targets an AUM of Rs 300 bn by FY27. It has already reached an AUM of Rs 206.6 bn, as of December 2024. The focus is on maintaining net non-performing assets (NPA) below 1%.

Capri Global is confident in achieving mid-teen ROE by FY27, leveraging a diversified portfolio and strong market demand.

In Q3 FY25, it also introduced rooftop solar loans, targeting a Rs 10 bn loan book over the next four years, driven by government subsidy schemes.

To know more, check out Capri Global Capital's financial factsheet and latest quarterly results.

#5 Aarti Industries

Last on this list is Aarti Industries.

Aarti Industries is the flagship company of the Aarti group.

It manufactures organic and inorganic chemicals at its major facilities in Gujarat and Maharashtra.

The company has a strong market position in the Nitro-Chloro Benzene (NCB)-based specialty chemicals segment.

Aarti Industries manufactures specialty chemicals in Benzene based derivatives.

The company has sixteen manufacturing units, two research and development (R&D) centres, five co-gen power plants, more than 100 products, more than 700 domestic and 400 export customers in about 60 countries with major presence in the US, Europe, Japan, etc.

As of 31 March 2025, LIC holds 6.8% stake in the company.

The company's revenue has grown at a CAGR of 13.7% in the last three years.

The company's three-year average RoE and RoCE were 16.6% and 13.3%, respectively.

Aarti Industries is witnessing a volume-led recovery in the non-energy business despite ongoing pricing pressures.

The company is actively developing new products, particularly within the ethylation value chain, and has expanded its capacity in this segment.

Backward integration into select downstream products is being pursued to enhance margin profiles and control costs.

Aarti Industries has signed two renewable energy power purchase agreements for solar and hybrid power, targeting a renewable share of over 75% in total power purchases by Q1 FY27.

This move is expected to yield significant savings in power costs.

The company established a joint venture with Re Sustainability and Recycling Private Ltd to develop advanced chemical recycling facilities, aiming for a resource recovery capacity of 500 tons per day by 2030.

The management expressed confidence in achieving sustainable mid-to long-term growth, targeting an EBITDA CAGR of approximately 20-25% over the next 3-5 years.

The projected capital expenditure for FY25 remained unchanged at Rs 13-15 bn, with Rs 3.8 bn spent in Q3 and Rs 10.2 bn in the nine-month period year-to-date.

To know more, check out Aarti Industries' financial factsheet and latest quarterly results.

Conclusion

In a market driven by noise and momentum, it's easy to miss the quiet strength of fundamentally sound midcaps-especially those backed by heavyweight investors like LIC.

While past performance isn't a guarantee of future returns, LIC's involvement often signals long-term conviction rather than short-term speculation.

For retail investors, these under-the-radar picks could offer a unique blend of stability and growth potential.

However, investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

As always, it's important to do your own research, but keeping an eye on where smart money is moving might just uncover your next winning investment.

Happy Investing.

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