4 Stocks Bought by Mutual Funds in the June Quarter

Mutual funds continued buying Indian stocks in June 2025, deploying a net Rs 154 bn into equity markets (both primary and secondary), as per data from Nuvama Alternative & Quantitative Research.

An analysis of fund flow data reveals that mutual funds have shown increased conviction in select stocks across diverse sectors, from pharma to technology to consumer discretionary.

This trend highlights a mix of value hunting, sectoral rotation, and a focus on fundamentals such as earnings visibility, balance sheet strength, and market leadership.

Mutual fund holdings in cash and equivalents dropped to Rs 1,807 bn or 5.34% of assets under management (AUM), down from Rs 1,961 bn (6.05%) in May, reflecting increased conviction in equity markets despite global volatility.

In this editorial, we delve into four notable stocks that witnessed significant mutual fund buying during the June quarter.

These stocks are filtered using Equitymaster's stock screener.

Read on...

#1 Asian Paints

Asian Paints is the largest home decor company in India. It operates in 14 countries spanning 4 regions globally.

The company deals in 2 business segments viz decorative paints which contributes 84% to sales and industrial paints which contributes 9% of revenue. Balance 7% revenue is derived from the international business.

The company is the largest paint company in India, 2nd largest in Asia, and 8th largest in the world. It holds a market share of over 55% in the organized domestic paints market, 60% in the decorative paints segment, and 20% in the automotive industrial coatings segment.

As of FY25, the company has over 169,000 retail touchpoints in India. It operates 72 stores, has over 267,000 business influencers, and a supplier base of more than 21,000.

Asian Paints has 17 manufacturing facilities outside India and 18 manufacturing facilities within India. It also has 28 outsourced processing centres.

Coming to the financials, it reported revenue degrowth at 4.5% in FY25 as demand remained slow and there was competition from local peers.

EBITDA margin also came 360 bps lower on a YoY basis due to significant jump in raw material price and the company not being able to pass it on due to intense competition.

Going forward, the management does not see much demand coming back strongly and targets single digit value growth in FY26 with 18-20% consolidated EBITDA margin guidance remaining intact.

Domestic institutional investors bought 5.5% stake in the company during the June 2025 quarter with names such as LIC, SBI Mutual Fund, and ICICI Prudential Mutual Fund participating.

#2 Engineers India

Engineers India Ltd provides consultancy and engineering services.

It undertakes turnkey contracts for a range of project services including project conceptualization, planning, design, engineering, procurement, construction, and commissioning.

The company operates in various industries such as petroleum refining, petrochemicals, pipelines, oil & gas, terminals & storages, mining, infrastructure, water and waste management, city gas distribution, power, and steel.

As of March 2025, the company's revenue mix stands at 44% revenue from turnkey business and 56% revenues from consulting business.

Also, as of March 2025, company's order book stands at Rs 117.2 bn of which consultancy orders make up 57% and the balance 43% order book is from turnkey projects.

Going ahead, the management has guided to maintain order inflow of at least Rs 40-50 bn per year.

Coming to the financials, the company recorded a degrowth of 5.9% in revenue in FY25. EBITDA, however, grew 72.4% due to a big jump in margins at 16.6% for FY25 from 9.1% in FY24.

The management is confident about revenue and margin sustainability, driven by record order book, robust order inflow, and sectoral tailwinds in both hydrocarbon, and non-hydrocarbon segments.

Domestic institutional investors have bought a substantial amount of the company's shares in the June 2025 quarter totalling 3.5%. The total stake of DII's has gone up from 10.8% in March to 14.3% in June 2025.

Kotak Multicap Fund, HSBC Smallcap Fund, and ICICI Prudential Energy Opportunities Fund were the new buyers in the company.

#3 Swiggy

Founded in 2014, Swiggy Ltd is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app.

The food delivery segment enables users to browse, order, and have meals delivered from a wide network of restaurant partners. Swiggy monetizes this by charging fees from restaurants, delivery charges, and platform-based advertising opportunities.

The out of home consumption segment includes services for dining and events, such as Dineout (for restaurant reservations and promotions) and SteppinOut (events management). Swiggy leverages its established restaurant partnerships to extend user engagement beyond home deliveries.

The quick commerce segment launched in 2020 offers fast delivery of groceries and household items, leveraging a network of "dark stores" to achieve rapid delivery times. This segment is expanding with new product categories and cities.

The company derives 49.4% of its revenues from the food delivery business, 38.8% from supply chain and distribution, 8.8% from quick commerce, and 3% from out of home consumption and platform innovations.

In FY25, Swiggy reported monthly transacting users (MTU) at 19.8 m which grew 34.5% YoY.

Swiggy's food delivery arm is turning profitable, with its contribution margin improving on higher ad revenue and operational efficiencies.

Quick commerce, while loss-making, is a high-growth category, projected to hit US$ 27 bn by FY27. Swiggy expects breakeven by Q3FY26, with mature stores already showing improvement.

Domestic institutional investors bought 4.2% shares of Swiggy and increased their stake from 9.3% in March 2025 to 13.5% in June 2025.

The main buyers were Kotak Emerging Equity Scheme, Mirae Asset Large and Midcap Fund, and Invesco India Flexi Cap Fund.

#4 Biocon

Biocon is engaged in the business of manufacture of biotechnology products and research services.

The company operates in three business segments namely the biosimilars segment, research services, and generics.

1. Biosimilars (58% of revenues): Biocon Biologics develops and markets a range of 20 biosimilars including insulins, monoclonal antibodies, and conjugated recombinant proteins across diabetology, oncology, immunology, ophthalmology, and other non-communicable diseases. It is one of the top 5 global players in biosimilars and among the top 3 in insulins.
2. Research Services (23% of revenues): Biocon is a global CRDMO (Contract Research, Development, and Manufacturing Organization) offering integrated services across pharma, biotech, nutrition, and animal health sectors. It operates with a team of 5,600+ scientists and serves 400+ active clients.
3. Generics (19% of revenues): Biocon is a global generics player with vertically integrated operations across APIs and complex formulations. It has a portfolio of 79 APIs and 83 generic formulations (22 launched in the US).

The company operates multiple manufacturing facilities in India (Bengaluru, Hyderabad, Vishakhapatnam, Mangalore), Malaysia (Johor), and the US (Cranbury, NJ, and Baltimore)

In recent months, the company has received multiple approvals for a variety of drugs. In September 2024, Biocon Pharma, a wholly owned subsidiary of Biocon, received approval for its ANDA for Sacubitril/Valsartan tablets.

Earlier in August 2024, Biocon secured another important USFDA approval for its ANDA for Daptomycin for injection. This drug is used to treat complicated skin infections and Staphylococcus aureus infections in the bloodstream.

Coming to its financials, Biocon has achieved a CAGR of 22% in revenue and a 5% growth in its net profit over the past five years.

DII's have increased their stake in the company from 15.7% in March 2025 quarter to 22.8% in June 2025 indicating a purchase of 7.1% over the past quarter.

Conclusion

The June 2025 quarter showcased a clear signal of rising domestic institutional investor (DII) confidence in the Indian equity markets, despite prevailing global uncertainties.

Mutual fund buying reveals a shift towards stocks that offer a blend of sectoral tailwinds, resilient fundamentals, and clear visibility of future earnings.

The common thread across these investments is mutual funds' focus on resilient business models, long-term growth visibility, and leadership in respective sectors.

For individual investors, these trends offer valuable cues. Observing where institutional money is flowing, particularly in a volatile macro environment can help in identifying potential multibagger opportunities or sectors poised for re-rating.

The buying by domestic investors serves as a vote of confidence for these stocks and offers a roadmap for discerning investors.

While mutual fund actions should not be the sole basis for investment decisions, they are certainly worth factoring into a broader research-driven approach. With the right research and a balanced approach, these funds may offer insights into growth opportunities in select stocks.

As always, investing decisions should be guided by individual risk tolerance, financial goals, and proper due diligence.

Remember the challenges before diving headfirst.

Happy Investing.

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