Stocks Purchased by Mutual Funds in August 2023

[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1694890170183{margin-right: 16px !important;margin-left: 16px !important;border-right-width: 10px !important;border-left-width: 10px !important;}”]Data reveals that many mid-cap and small-cap stocks have experienced significant growth over the past three months. In fact, both the mid-cap and small-cap indices have witnessed higher fund inflows than the Nifty in August. It’s not surprising that mutual fund schemes have played a significant role in these investments.

During August, mutual fund schemes made purchases across various mid-cap and small-cap stocks, spanning sectors as diverse as energy, hotels, and pharmaceuticals. Despite some analysts’ caution regarding these stocks, fund managers are selectively acquiring stocks they believe have the potential for further growth.

Listed below are a few stocks from the Nifty 500 universe that have gained increased interest from mutual fund schemes. Each of these stocks saw net purchases of more than one lakh shares by at least four mutual fund schemes in August, along with a 5% increase in holdings.

Zomato

Zomato is a leading food delivery aggregator in India, with presence in 23 other countries as well. The company’s management is confident of attaining over 40% YoY growth in the coming years, primarily fuelled by an increase in the user base. Funds who increased holdings in Zomato:

• Axis Bluechip Fund Growth
• Kotak Equity Opportunities Fund Growth
• Kotak Flexicap Fund Growth
• Axis Flexi Cap Fund Regular Growth

Suzlon

Suzlon Energy is primarily engaged in the business of manufacturing of Wind Turbine Generators (‘WTGs’) and sale of related components of various capacities. After years of posting losses, it ended FY23 with a net profit of Rs 2,849 crore, raising investors hopes of a turnaround in the company. Funds who increased holdings in Suzlon:

• 360 ONE Focused Equity Fund Regular Growth
• ICICI Prudential Mid Cap Fund Growth
• HDFC Large and Mid Cap Fund Growth
• Bandhan Sterling Value Fund Regular Plan Growth

Union Bank of India

Union Bank of India is one of the leading public sector banks of the country. Like many other public sectors banks, Union bank has seen a drastic improvement in its performance following a rise in disbursements as well as paring down NPAs to 1.58% from peak levels of 4.7% a few quarters ago. Funds who increased holdings in Union Bank of India:

• Nippon India Growth Fund – Growth
• HDFC Mid-Cap Opportunities Fund Growth
• Sundaram Mid Cap Growth
• Aditya Birla Sun Life Pure Value Fund Growth

Lemon Tree Hotels

Lemon Tree Hotels is the fifth largest hotel chain in India based on number of hotels. It caters to different segments of the market with its different brands. Aurika represents the premium segment, Lemon Tree represents the business hotels while Red Fox targets the economy segment.
In October 23, it will begin operations of its largest property in Mumbai, Aurika Sky City with 670 rooms and this is expected to drive growth for the company. Funds who increased holdings in Lemon Tree Hotels:

• HSBC Small Cap Fund Regular Growth
• Nippon India Small Cap Fund – Growth
• Bank of India Small Cap Fund Regular Growth
• Bank of India Manufacturing & Infra Growth

Indigo (Interglobe Aviation)

Indigo is one of the most efficient low cost air carriers (LCCs) with a market share of 54% in the Indian aviation sector. It is one airline which has consistently maintained its market share in the industry. Management has guided that it would add 25% capacity in Q2FY24 as against Q2FY23. Funds who increased holdings in Indigo:

• Motilal Oswal Flexicap Fund Regular Plan Growth
• Kotak Equity Arbitrage Fund Growth
• Mirae Asset Emerging Bluechip Fund Growth
• Canara Robeco Emerging Equities Growth

Suven Pharma

Suven Pharmaceuticals is engaged in the business of development and manufacturing of New Chemical Entity (NCE) based Intermediates, Active Pharmaceutical Ingredients (API), Specialty Chemicals and formulated drugs under contract research and manufacturing services for global pharmaceutical, biotechnology and chemical companies. Funds who increased holdings in Suven Pharma:

• DSP Tax Saver Fund Regular Plan Growth
• DSP Flexi Cap Fund Payout of Income Dist cum Cap Wdrl
• DSP Equity Opportunities Fund Growth
• Quant Business Cycle Fund Regular Growth

Coforge

Coforge is a mid-sized IT services company that offers system integration, apps & BPO services to BFSI, travel & healthcare verticals. The company has achieved the milestone of annual revenue of US$1 bn in revenue in FY23 and is now aiming for US$2 bn revenue annually with sustainable profitability. Funds who increased holdings in Coforge:

• SBI Large & Midcap Fund Regular Payout Inc Dist cum Cap Wdrl
• HDFC Flexi Cap Fund Growth
• SBI Contra Fund Regular Payout Inc Dist cum Cap Wdrl
• SBI Long Term Equity Fund Regular Payout of Income Distribution cum Cap Wdrl

Minda Corp

Minda Corporation is an auto ancillary company that primarily serves auto OEMs across two main verticals – Mechatronics & Aftermarket (i.e. MCH – safety & security system (lock & key, smart key), die-casting, starter motors, etc.) and Information & Connected Systems (i.e. ICS – mainly wiring harnesses, sensors and instrument clusters).
It has a strong set of products that have applications in both 2W and 4W EVs. The growth of the overall EV market is expected to benefit the company substantially. Funds who increased holdings in Minda Corp:

• ICICI Prudential Smallcap Fund Growth
• Axis Small Cap Fund Regular Growth
• ICICI Prudential Transportation and Logistics Fund Regular Growth
• Axis Multicap Fund Regular Growth

ACC

ACC is one of India’s oldest cement companies and was acquired last year by the Adani group. It recently began commercial clinker production at its greenfield Ametha Integrated Cement Plant, situated in the Katni district of Madhya Pradesh. This plant boasts a clinker capacity of 3.3 million metric tonnes per annum (MTPA) along with a cement capacity of 1 MTPA, adding to the overall production capacity of ACC. Funds who increased holdings in ACC:

• Mirae Asset Emerging Bluechip Fund Growth
• Mirae Asset Midcap Fund Regular Growth
• Aditya Birla Sun Life Multi-Cap Fund Regular Growth
• ICICI Prudential Equity Arbitrage Fund Regular Growth

Prince Pipes

Prince Pipes & Fittings is one of the leading manufacturers of plastic pipes in India, having 5.5% market share in this industry. Products are marketed under the brand names: Prince Piping Systems and Trubore. Apart from pipes, in the last quarter, it has forayed into bath fittings and sanitaryware. Funds who increased holdings in Prince Pipes:

• ICICI Prudential Smallcap Fund Growth
• DSP Small Cap Fund Regular Plan Growth
• Mirae Asset Multicap Fund Regular Growth
• JM Flexicap Fund Growth

Concord Biotech

Concord Biotech is an India-based biopharma company and one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressant and oncology It made its debut on the stock exchanges on 18th August 2023. Many fund managers have bought in this company as soon it listed. Funds who increased holdings in Concord Biotech:

• HSBC Small Cap Fund Fund Regular Growth
• DSP Healthcare Fund Regular Growth
• Nippon India Pharma Fund – Growth
• Mirae Asset Healthcare Fund Regular Growth

BSE

BSE is the oldest stock exchange in the country. In recent times, increasing participation in the equities and derivatives market has been a catalyst for the company’s growth. BSE options volumes, which were non-existent between January and May this year, rose above Rs 10 trillion (ADTV on notional basis) in August for the first time, following changes such as lower ticket size and introducing Friday expiry.
Funds who increased holdings in BSE:

• Quant Small Cap Fund Growth
• Nippon India Growth Fund – Growth
• Motilal Oswal Balance Advantage Fund Regular Plan Growth Option
• Quant Tax Plan Growth

 

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255 )

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

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