In this article, you will learn about some such stocks in which mutual funds have increased their holdings. If mutual funds increase their holding in stock, then it is a positive sign, as mutual funds invest in stocks only after doing a lot of research.
In many stocks, mutual funds have increased their holding, so in this article, you will know about only such stocks whose market capitalization is less than 6000 crores and whose fundamentals are also good, so that the growth opportunities are high.
Apollo Pipes Limited
The first stock is Apollo Pipes Limited. This company manufactures PVC pipes and fittings. Their product portfolio includes more than 1000 products including CPVC and UPVC pipes, water storage tanks, taps, and fittings and has a total capacity of 1 lakh metric tons per annum (MTPA).
So basically this company manufactures products related to plumbing, the holding of mutual funds in this stock was 8.23% in quarter one, due to which mutual funds have increased to 9.54% in quarter 2.
In this, L&T Mutual Fund and BNP Paribas India have taken new holding while Kotal Small Cap Fund has increased their holding.
Company’s Fundamental
Fundamentals of Apollo Pipes Limited Company: It is a small-cap company and its market capitalization is Rs 2302 crores, its return on equity average is 13.9, return on capital employed is also 16.5% which is assumed to be average.
This company has a debt of Rs 23.8 crore but its annual profit is Rs 44.5 crore, so because its debt is less than its annual profit, it can be considered debt-free. But the cash flow of this is in the negative – Rs.30.2 crores.
Being in a cash flow negative is not good for any company but many times when the company is expanding then the cash flow is negative.
The earning per share of the company is Rs 14.2 which is average according to its price and the holding of promoters is 52% which is considered good.
Company Pros
Pros of Apollo Pipes Limited: This company has reduced its debt and this company is almost debt-free. This company is expected to give good quarter results and its CAGR of last five years is 232.48% which is considered very good.
company’s cons
Cons of Apollo Pipes Limited: This stock is trading higher than its book value and its return on equity is low 13.76% for the last three years.
Company’s Financial Trend
The financial trend of Apollo Pipes Limited: The company’s profit has been increasing continuously for the last five years and is 44.47 crores in 2021.
And if you look at its quarterly profit, then in comparison to quarter 2 (September 2020) of last year, its profit has increased by 14.05 crores in quarter 2 (September 2021) of this year.
Right now the price of one share is running at ₹583.20.
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RHI Magnesita India Limited
The second number stock is RHI Magnesita India Limited, which was earlier known as Orient Refractories Limited (ORL), so if you do not find this stock by writing RHI Magnesita in your broker account, then you will search by typing Orient Refractories.
This company manufactures refractory products, refractory products are products that are made in very high temperatures and are mainly used in the steel industry.
Apart from this, the company also supplies its products to the Glass, Petrochemicals, Cement, ETC industries. It is the market leader of refractories products in India and also has a global customer base.
The holding of Mutual Funds in this company was 11.81% in Quarter 1 from which Mutual Funds have increased to 12.09% in Quarter 2.
In this, L&T Mutual Fund and ICICI Lombard Fund have increased their holdings.
Company Fundamentals
Fundamentals of RHI Magnesita India Limited: The company has a market capitalization of Rs 5671 crore, its return on equity is 18.1%, return on capital employed is 23.4% which is considered good.
The debt of the company: This company has a debt of Rs 62 crores while its annual profit is Rs 136 crores and this company also has a free cash flow of 81 crores. Its debt is less than its annual profit, so it will be considered debt-free.
The earning per share of the company is Rs 12.9 which is average according to its price and the holding of promoters in the company is 66.5% which is considered good.
Company’s pros
Pros of RHI Magnesita India Limited: This company is almost debt-free. This company can give good quarters result as expected and this company also gives dividend of 25.85%.
Company’s cons
RHI Magnesita India Limited cons: We could not find any company cons.
Company’s financial trend
The financial trend of RHI Magnesita India Limited: The company’s profit has been increasing continuously for the last five years and in 2021 it is 137 crores. And its quarterly profit in comparison to quarter 2 (September 2020) of last year’s quarter 2 (September 2021) of this year has increased by 43.10 crores.
Right now the price of one share is running at ₹ 351.45.
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CCL Product (India) Limited
The number three stock is CCL Products India Limited. This company produces, trades, and distributes coffee and this company manufactures more than 250 blends of instant coffee which are exported to 90+ countries.
It is the world’s largest private manufacturer, which has a capacity of 35000 metric tons per annum and its plants are also in India, Vietnam, and Switzerland.
This company is also growing in B2B business and is also dealing with retail chains in Europe and America. Apart from this, the plan of this company is to cover 1 lakh distribution points in the future, in 10 lakh population towns.
So the growth potential of this company is visible high and probably due to this mutual funds have also increased their holding in this stock.
In quarter 1 of this financial year, the mutual fund’s holding was 16.59% which they have increased to 17.73%.
In this, IIFI Focused Equity Fund and Aditya Birla Sun Life small-cap fund have taken new holding.
Fundamentals of the company
Fundamentals of CCL Products India Limited: The market capitalization of the company is Rs.5175 crores, the return on equity of the company is good 18.1%, the return on capital employed is also 16.5% which is considered as average.
Debt: The company has a debt of Rs 484 crore while its annual profit is 182 crore and this company also has a free cash flow of 16.2 crores, so this company is not debt-free. But because its debt to equity ratio is 0.42 which is less than 1.
The earning per share of the company is Rs 14.2 which is average according to its price, and the holding of the promoters of the company is 46.2%.
Company’s pros
Pros of CCL Products India Limited: This company gives a fair dividend of 33.12%.
Company’s Cons
Cons of CCL Products India Limited: The company’s sales growth in the last five years is low at 5.92%.
Company’s financial trend
The financial trend of CCL Products India Limited: The company’s profit is increasing continuously for the last 5 years and in 2021 it is 182 crores. Its quarterly profit is also maintained and its share price is currently running at Rs 408.75.
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Antony Waste Handling Cell Limited
The number four stock is Antony Waste Handling Cell Limited. This company comes in the top 5 players of the Indian municipal-based management industry and its main business is waste collection and transportation, for this purpose this company has 1150 vehicles.
Apart from this, this company also does the construction, operation, and maintenance of waste management facilities. This company is present in 9 states of India and they have more than 18 projects going on.
It is also the owner of Asia’s largest single waste processing location with a capacity of 7500 tonnes per day.
This company has also recently entered into the business of generating energy from waste and has taken a debt of Rs 170 crore for setting up the plant. The power generation capacity of this plant will be 14 MW.
So this company is also growing, the holding of mutual fund in quarter 1 was 6.52%, which has been increased by the mutual fund to 7.63% in quarter 2.
In this, Tata Insurance companies have increased their holding.
Company’s fundamentals
Fundamentals of Antony Waste Handling Cell Limited: It is a very small company and its market capitalization is Rs.829 crores, its return on equity average is 15.8%, return on capital employed is 21.3% which is considered good.
Debt: This company has a debt of Rs 140 crore and this company has taken the debt for setting up a waste to energy generating plant. Its annual profit is 45 crores and its debt to equity is 0.37 which is less than 1.
This company also has a free cash flow of 93 crores, its earning per share is Rs 21.3 which is good according to its price and the holding of promoters in the company is 46.2%.
Company’s Pros
Pros of Antony Waste Handling Cell Limited: This company has reduced its debt.
Company’s Cons
Cons of Antony Waste Handling Cell Limited: This company does not give dividends and is a very small company, so dividends cannot be expected from it.
Company’s financial trend
The financial trend of Antony Waste Handling Cell Limited: This company has the highest profit of 45.04 crores in 2021 and if you see its quarterly profit then its quarterly profit is also increasing and in September 2021 it is 18.04 crores.
And now its one share price is running at ₹293.95.
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This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.
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FAQ
The holding of Mutual Funds in this company was 11.81% in Quarter 1 from which Mutual Funds have increased to 12.09% in Quarter 2.
The holding of mutual funds in this stock was 8.23% in quarter one, due to which mutual funds have increased to 9.54% in quarter 2.
The holding of mutual funds in quarter 1 was 6.52%, which has been increased by the mutual fund to 7.63% in quarter 2.
In quarter 1 of this financial year, the mutual fund’s holding was 16.59% which they have increased to 17.73%.