• OUTLOOK ARENA
  • JULY 1, 2022

5 Indian Companies where Mutual Fund Holdings are Consistently Increasing

5 Indian Companies where Mutual Fund Holdings are Consistently Increasing

The past year has been a roller coaster ride for the Indian stock market. Recovering from the Covid-19 pandemic and facing a global crisis like the Russian-Ukraine war simultaneously has brought much volatility to the market.

Then there's FII selling, high inflation, and rising interest rates. All these factors combined have taken a toll on Indian markets.

Amid this volatility, an investor must exercise extreme caution when deciding which stocks to invest in and which ones to sell.

One smart way to filter stocks is to figure out who else is buying them. So that means tracking the shareholding activity and observing what FIIs and mutual funds are buying.

Fund managers carefully pick stocks based on various factors and zero in on stocks best placed to come through.

Mind you, fund managers can also make mistakes so mimicking their portfolio does not provide a clear solution.

With that in mind, here's a list of stocks where mutual funds have consistently increased their holdings.

#1 Max Healthcare

The first on our list is Max Healthcare.

In the past four quarters, the mutual fund (MF) shareholding has increased from 4.8% to 17.4%.

Thus an increase of 12.3% is observed in the last one year.

Max Healthcare Institute is an Indian hospital chain headquartered in New Delhi. It owns and operates healthcare facilities in the national capital region of Delhi, North India, and Mumbai.

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Max Healthcare's advanced pathology service, Max Lab Centeron, is expanding aggressively.

It recently opened a Max Lab in Jammu, with plans to expand franchise collection centers to at least seven more locations in the current year.

The rapidly expanding diagnostic chain has a presence in over 25 cities and over 800 collection points.

In its latest quarterly result, it reported a revenue of Rs 3.8 bn which stood at Rs 3.1 bn in the year ago period.

Its net profit increased 89% to Rs 662 m which stood at Rs 72 m a year ago in the same period.

To know more about the company, please check Max Healthcare company fact sheet and quarterly results.

#2 Coforge

Next on our list is Coforge.

In the last four quarters, MF holdings in the IT company has increased from 9.3% to 19.4%. Fund managers have increased their holdings by almost 10%.

Coforge, formerly known as NIIT Technologies, is a multinational Indian information technology (IT) company headquartered in Noida, India, and New Jersey, USA.

Coforge is a market leader in product engineering, leveraging cloud, data, integration, and automation technologies to transform client businesses into intelligent, high-growth enterprises.

The company has a presence in 21 countries and 25 delivery centers spread across nine countries.

Recently, Coforge entered into a partnership with Estee Express Lines to bring agile and next-generation solutions to the transport & logistics industry.

In its latest quarterly results, it recorded revenue of Rs 8.8 bn which stood at Rs 6.1 bn in March 2021, an increase of 33.3%.

The net profit increased 73.9% to Rs 1.8 bn from Rs 379 m one year.

To know more about the company, check out COFORGE company fact sheet and quarterly results on our website.

#3 IPCA Labs

The third company on our list is IPCA Labs.

In last four quarters, the MF holdings have increased from 20.8% to 28.2%, an increase of 7.3% in the last one year.

Indian Pharmaceutical Combine Association (IPCA) Labs is one of the oldest pharmaceutical companies in over 120 countries across six continents.

It manufactures over 350 formulations and 80 APIs for various therapeutic segments, including cardiovascular, anti-diabetic, pain management, gastrointestinal, and cough.

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The company has 15 API and 11 formulation manufacturing facilities across the globe, with a manufacturing leadership of 12 APIs. It's setting up a new manufacturing plant in Dewas, Madhya Pradesh, for APIs worth Rs 2.5 bn.

In 2022, the company's revenue is expected to grow due to capacity addition at the Ratlam plant and production at its Dewas plant.

The company has consistently paid dividends to its shareholders and is almost debt-free despite its capex plans.

However, in its latest quarterly result, the company recorded a revenue of Rs 11 bn which stood at 10 bn a year before, a muted performance.

And the net profit decreased to Rs 1.1 bn from Rs 1.5 bn in past one year.

To know more about the company, check out IPCA LABS company fact sheet and quarterly results on our website.

#4 Bharat Forge

The fourth stock on our list is Bharat Forge.

In last four quarters, MF holdings have consistently increased from 10.7% to 17.4% in this defence stock. Fund managers have believed in this company and raised 6.9% stake.

Bharat Forge is the world's second-largest forging company in terms of volume and revenue.

Forged and machine components are produced for the automotive, aerospace, mining, oil and gas, marine, and power industries.

Steel forgings, finished machine crankshafts, front axle assembly, and components used in a variety of industries are among its products.

In addition, the company produces automotive components for original equipment manufacturers (OEMs) such as Volvo, General Motors, Tata Motors, and Kirloskar Oil Engines.

Recently, it entered into an agreement with Rafael Advanced Defence Systems (Israel) and received an export order worth US$ 100 m to be executed in the next three years.

In its latest quarterly result, it recorded a revenue of Rs 16 bn which stood at 13 bn a year ago in March 2021, marking an increase of 18.7%.

The net profit of company grew 21.5% to Rs 2.6 bn which stood at Rs 2 bn a year ago in the same period.

To know more about the company, check out the BHARAT FORGE company fact sheet and quarterly results.

#5 SBI Life Insurance

The last stock on our list is SBI Life Insurance.

In the last four quarters, MF holdings have increased from 5.8% to 11.8%.

SBI Life is an Indian life insurance company founded by the State Bank of India and the French financial institution BNP Paribas Cardif.

SBI Life, guided by the 'Customer-First' philosophy, places great emphasis on maintaining world-class operational efficiency and providing its customers with a hassle-free claim settlement experience.

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The company has 952 offices, 18,515 employees, a large and productive individual agent network of approximately 146,057 agents, and 50 corporate agents.

The company has improved its VNB margin due to a better business mix. Value of new business (VNB) margin a measure of profitability in the life insurance business.

The company reported a VNB margin expansion of 100 basis points in the March 2022 quarter compared to the year ago period.

This VNB margin expansion is likely to persist as the company's business mix continues to change.

In its latest quarterly result, the company reported a 26.3% increase in net profit to Rs 6.7 bn which stood at Rs 5.3 bn a year ago.

To know more about the company, see the SBI LIFE INSURANCE company fact sheet and quarterly results.

Snapshot of stocks with consistently increasing holding by mutual fund managers

Company Name Mutual Fund Investors Holdings (%)
March'22 Dec' 21 Sep'21 June'21 March'21 Change four quarter
Max Healthcare Institute Ltd. 17.47 15.58 8.64 7.90 4.83 12.64
Coforge Ltd. 19.26 14.44 14.42 11.48 9.32 9.94
Ipca Laboratories Ltd. 28.20 26.05 21.82 21.49 20.85 7.35
Bharat Forge Ltd. 17.64 14.32 12.21 10.92 10.70 6.94

Since you're interested in tracking mutual fund buying and selling activity, check out Equitymaster's powerful stock screener.

It filters stocks that mutual funds and institutional investors are buying and selling.

To track what mutual funds are buying, check out our screener on stocks recently bought by mutual funds.

You can also screen stocks recently sold by mutual funds.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

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