But the biggest MF bet of the quarter was media firm
that saw the institutional investor category hike stake by 443 basis points to 8.1 per cent from 3.67 per cent in the March quarter.
Two-wheeler maker
saw MFs raise stake to 15.83 per cent from 11.5 per cent sequentially, up 433 basis points.
Consumer Electricals also attracted strong domestic fund inflows during the quarter. MF holding in this stock rose by 358 basis points QoQ to 31.48 per cent from 27.9 per cent. Federal Bank saw 236 basis points QoQ rise in MF holding to 32.59 per cent from 30.23 per cent.
Domestic funds’ stake in battery maker Amara Raja rose 198 basis points to 7.84 per cent from 5.86 per cent and in NBFC
by 167 basis points to 3.7 per cent from 2.03 per cent.
In the case of Zee Entertainment, the company management expects double-digit ad growth for the industry in FY22 over FY20, provided the second Covid wave is contained in the June quarter.
Ashika Stock Broking said the media firm has taken proactive measures to bring back the business on the growth track. “The company has decided to significantly scale down investments in SugarBox, which has been a key area of concern for investors. We have a positive view on ZEEL given the recovery in advertisement revenue and the company’s strong focus on OTT,” it said in a note this month.
In the case of TVS Motor, the two-wheeler maker has increased focus on electric vehicles (EVs) with a strong product pipeline and a Rs 1,000 crore investment plan over the next two years.
“The domestic 2W volume outlook is positive and premium motorcycles/scooters could outperform going ahead. In addition, the export outlook is encouraging across most markets on higher commodity prices and better forex availability for importers,” Emkay Global said on TVS Motor.
For Crompton Greaves Consumer Electricals, analysts said the company has consolidated its position in the fans and pumps segments and has scaled up to the number two position in the water heater segment. “With its strong distribution network, we expect Crompton to capitalise on pent-up demand emerging post the lifting of lockdown restrictions,” said Motilal Oswal Securities.
In the case of Federal Bank, analysts said asset quality held up better than expected in the June quarter, but any meaningful re-rating of the stock will be contingent on consistent return on asset delivery by the bank in excess of 1 per cent.
The recently-notified advance cell chemistry PLI scheme by the government to promote indigenisation of lithium-ion batteries (LIB) market is seen as positive for Amara Raja.
“Amara’s intent of competing strongly in the new technology landscape is a step in the right direction but we await specific action and funding contours before decisively turning position on the stock,” ICICI Direct said.
Analysts are positive on Shriram Transport. “Our preference for Shriram Transport in these uncertain times is underpinned by its unique customer base with a moat, along with strong underlying demand for used vehicles during the current slowdown. We are building in some stress on asset quality for FY22/23E due to recent lockdowns and consistent worries about another Covid wave. Shriram Transport remains one of our top picks in the NBFC coverage universe,” Emkay Global said.
Alkem Laboratories and Ashok Leyland are two other stocks where MFs hiked stakes by over 150 basis points sequentially. Analysts India business growth for Alkem Laboratories is expected to pick up in FY22 but these gains may be offset by lower growth in the US. Besides, cost rise could impact Ebitda margins by 200-250 bps, they said.
They find Ashok Leyland a pure-play on recovery bet on the commercial vehicle (CV) cycle. They said the CV maker is on a strong footing with a lean cost structure and reasonable debt, unlike the previous cycles.
Mphasis, Page Industries,
, Container Corporation of India, and Info Edge (India) saw MF raising stakes by 100-130 basis points during the quarter gone by.
