top mutual fund stocks to buy: Midcap Watch: MFs bought Vodafone Idea and ZEEL in Nov, slashed exposure to IRCTC
Vodafone was their top midcap buy as funds held 50.67 crore shares of the telecom company at the end of November, compared with 36.51 crore in October. In value terms, they owned Rs 560 crore worth shares at the end of November against Rs 349 crore at the end of October, ICICIdirect said in a report.
Some recent estimates suggested the recent tariff hikes were likely to lift Vodafone’s operating income by 70 per cent and revenues by 14 per cent in FY22. The stock is up 52 per cent in the last one year, compared with a 25 per cent rise in the BSE Sensex during the period.
Mutual funds possessed Rs 3,788 crore worth of Zee Entertainment shares at November-end against Rs 2,800 crore as on October 31. Brokerage CLSA said a potential merger with Sony could be a rerating catalyst for the stock. This scrip is up 59 per cent in the last one year.
MFs hiked exposure in APL Apollo Tubes to Rs 1,557 crore from Rs 1,045 crore, owning 1.68 crore shares on November 30 against 1.31 crore on October 31. Net profit of APL Apollo Tubes rose 42.53 per cent to Rs 131.30 crore in the September quarter. This scrip has soared 176 per cent in the last one year.
Domestic funds raised a stake in JSW Energy, which has rallied a whopping 318 per cent in the last one year. This is even as 9 out of 10 analysts tracking the stock have a sell rating on it.
Money managers also bet on another high-flying stock, Devyani International, whose shares have more than doubled over its issue price. The scrip got listed in August this year. MFs owned Rs 370 crore worth of the company shares at the end of November against Rs 253 crore a month ago.
Glenmark Pharmaceuticals, Hindustan Aeronautics, Godrej Industries Laurus Labs and Sun TV Network were some of the other stocks MFs bought in November. The month saw huge money entering equity mutual funds, with a net flow of Rs 11,600 crore against inflows of Rs 5,200 crore in October.
“Healthy trend of maturity among retail investors was seen as higher inflows were witnessed during the market fall in November,” ICICIdiect said in a note.
Meanwhile, MFs were seen cutting exposure to
to 24 lakh shares from 61 lakh shares month-on-month, with their holding now worth Rs 194 crore from Rs 520 crore.
Tata Power, GMR Infra, BHEL and realtors Macrotech Developers and Godrej Properties were some of the midcap companies where MFs cut exposure in November. Holdings in Amara Raja Batteries, Escorts, Syngene International and Tata Chemicals were also trimmed in the period.