let’s talk about those 5 stocks where mutual funds have done the most buying
First company where mutual funds have done the most buying is Bharti Airtel. You must be knowing about Bharti Airtel which belongs to telecom sector. the market capitalization of this company is more than 2,25,000 crores.talking about the share price, it has been a bit underperforming from sometime.
when it had dipped around Rs. 400 in the Coronavirus situation, it showed a good recovery. it also touched 570-580 at times and then some ruling was supposed to come from the supreme court and then it again showed a good recovery . and then a piece of news came about Vodafone will be shut and the benefit will go to Airtel.
but there is no sign of that till now. and as per the last month’s news, Jio added a lot of subscribers that was churned from Vodafone and Idea. and because of those nows, Vodafone and idea was down and if I talk about last few days, it also touched Rs 400 and currently, it is trading around 415 in this stock, we have seen a lot of buying from mutual funds’ side.
and this is the first stock of our list as in it, mutual funds have done a lot of buying. talking about performance, company was booking loss since few days. as it has a big liability which it has to pay to the government in the coming years. so this was Airtel in which mutual funds have done a lot of buying and now we’ll talk about .
the second company which comes after Airtel in which mutual funds have done the most buying. so the 2nd large cap company where most the the investments have taken place is Maruti Suzuki.
If i talk about maruti suzuki in detail, then we all know that in passenger sector it is the market leader. and it has a market share of more than 50%. and since past few days, we have seen that Maruti Suzuki has performed really better in sales September month’s passenger sector total sale of Maruti Suzuki was in that they has more than 50%of market share
and in auto sector we have seen that a lot of stocks have performed better lately owing to which we have seen buying in different sectors in Maruti Suzuki, mutual funds have done a buying of aroynd 1087 crores just in the last month.
comparing to Airtel, so Airtel had an investment of 3000 crores and then comes Maruti Suzuki in which mutual funds have almost invested 1097 crores in the month of September. if I tak about the share price of this company, it had touched a botton of 4000 crores. after whcih we have seen a better recovery in the company’s share price .and currently the share price of this company trades around Rs. 6800 .
so talking about auto sector, it was in the downtrail from sometime. but recently, we have seen that we are getting a lot of news from the auto sector .one more news came which was around passenger sector’s Maruti Suzuki and one more company Tata Motors.in which Rakesh Jhunjhunwala had invested 500 crores.
after 2 large cap companies, let’s talk about 2 mid cap companies in which mutual funds have done the most buying and the first in this list Zydus Welness. this compant belongs to the FMCG sector. which has different brands that you might have used . Sugar Free is one of the popular brands. so in Zydus Welness, mutual funds have invested more than 500 crores last month. which is a very big investment compared to Zydus Welness’s size. because it is a midcap company with a market cap of more than 11000 crores. so 500 crores can be considered as a big investment for this .
talking about the P/E ratio, it has P/E ratio of more than 70. which is normally a bit more for a FMCG sector. but talking about June’s quarter, company has provided a good result on quarter on quarter lately in June 2020, company booked a profit of 89 crores. and we compare it to June 2019, company’s profit was 80 crores.
we can see an improvement of more than 10% in company’s profit. the operating profit margin of Zydus Wellness was around 23% in June’s quarter. one more interesting thing about Zydus wellness is promoters have sold their holding in Zydus Wellness. but here domestic institutional investors which is mutual funds have done a lot of buying. because of which we have seen a spike in their share holding pattern.
the fourth company of this list belongs to the technological sector. technological sector have given an amazing outperformance recently. performance in recent times there is one more company called Mindtree in which mutual funds have done a lot of buying in the past one month. the total amount of investment by mutual funds in this company is 450 crores in the month of September.
which can be considered as a big investment. If we talk about midcap space, so after Zydus Wellness, this is the company in which mutual funds have done a lot of buying. The P/E ratio of Mindtree is around 25, which is comparable to other companies in the IT sector. where the P/E ratio is normally in this range . but if we talk about recent quarterly results of Mindtree, the results were outstanding. the quarterly result of September 2019 can be seen on the screen.
the total sales of the company in September 2019 was Rs 1914 Cr. which has increased to 1926 Cr and the company net profit also gave a good result. The net profit of the company which was 135 Cr in Sep 2019 has now increased to 254 Cr in Sep 2020. which shows a great improvement in the company’s net profit. and in the company’s operating profit margin. and recenty, tech companies have performed really well and because of which Mutual funds might have invested in them.but they are institutional investors and we cannot comment about the reason why the have invested.
Let’s talk about the fifth company which is from small cap space and fifth in the list and mutual funds have invested in this company in September. name of the company is CAMS – Computer Age Management Services. recently the IPO of this company came and was oversubscribed. Recently, muual funds have invested more than 700 crores in this company
which is a very big investment as compared to company’s market cap. the market capitalization of CAMS is around 6500 crores. if you are thinking to invest in this company or have already invested so you should know that company’s quarterly result is about to come. and the older results are not available easily and if you are thinking to invest, please look at the quarterly results carefully. so that you can make an informed decision regarding the same. So this was about mutual funds buying; which were the companies in which mutual funds had bought in the last month.