In this Blog, we will look at top 10 favorite stocks under Mutual Fund Holding Stocks.
Mutual funds have superior research capabilities and perform extensive analysis about the company before investing in it.
A high mutual fund stake in a company is considered to be an endorsement about the company’s prospect. Any stake increase is a signal of potential change in fortunes of the company.
Investors can do a safe bet with the stocks having a high MF buying over a period combined with a good set of fundamental filters.
Criteria to Select Stocks:
- 5Y Avg. RoE – The stocks with more than 15% of Average Return on Equity for the past 5 years.
- 5Y Avg. EBITDA Margin – The stocks with more than 10% of Average EBITDA Margin for the past 5 years.
- QoQ increase in MF Holding – The stocks which are bought more than 1% by the Mutual Funds (MFs) in the QoQ (Quarter on Quarter) Timeframe.
10 favorite stocks under “Mutual Fund Holding Stocks”
- Clean Science and Tech. Ltd – The company manufactures functionally critical Speciality Chemicals, Pharmaceutical Intermediates and FMCG Chemicals. The differentiation in the process manufacturing between Clean science and peers assisted company to offer products at competitive price and thereby helped it gain meaningful market share across its product portfolio.
- Coforge Ltd – Coforge is an IT services company providing end-to-end software solutions and services. It is among the top-20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA.
- Indraprastha Gas Ltd – Indraprastha Gas (IGL) is one of India’s largest city gas distribution company and primarily operates in NCT of Delhi with CNG sales contribute more than 70% of its total sales volume. IGL is currently operating in 10 geographical areas.
- J B Chemicals and Pharma. Ltd – The group derived 43% and 57% of the consolidated revenue, respectively, in fiscal 2021, from India and the international market. Its three brands—Rantac (anti-peptic ulcerant), Cilacar (calcium channel blocker), and Metrogyl (amebicides)—feature among the top 200 brands in India, and accounted for over 75% of domestic formulations revenue.
- Sona BLW Precision Forgings Ltd – It is one of India’s leading automotive technology companies which designs, manufactures and supplies highly engineered, mission critical automotive components and it is one of the largest exporters of starter motors from India.
- Tata Chemicals Ltd – TCL is the world’s third largest producer of soda ash with annual soda ash capacity of 4.1 MMT (Million Metric Tonne), about two thirds of which is natural soda ash capacity leading to efficient operations in terms of lower operating costs.
- NMDC Ltd – NMDC is the largest iron ore manufacturer in India accounting for 18% of the total domestic production. The average annual production of the company stood at 17 million MT for the past 5 years. Despite its high capex requirement, the company is paying healthy dividends through high free cash balance.
- Cyient Ltd. – Cyient is engaged in providing global technology services and solutions specializing in geospatial, engineering design, analytics, network and operations solutions. Cyient’s niche offerings and strong client relationship have driven a healthy revenue growth over the last five years.
- Century Plyboards (India) Ltd – The company is the leading manufacturer and supplier of plywood with more than 25% of market share in the organized plywood market of India. The Indian plywood industry is dominated by unorganized players, which account for around 70% of the total plywood market.
- Hero MotoCorp Ltd – HMCL’s market share in the overall two-wheeler industry improved to 37.04% in fiscal 2021 as compared to 35.78% in the previous fiscal. The company is India’s largest motorcycle manufacturer and fourth-largest scooter manufacturer, accounting for 51% and 10%, respectively, of the domestic market share as on March 2021.
So these were the Top 10 favorites to Mutual Fund Holding Stocks. Please read our other article on “Top 10 Debt Free Companies in India“