The increasing clout of Dalal Street’s retail army can be clearly noticed in a pack of nine stocks which have given multibagger returns in FY24 despite seeing selling by both the big boys – FIIs and mutual funds.
An analysis of companies with a market capitalisation of over Rs 500 crore shows that there are at least 64 counters where smart money ownership went down in the September quarter but the stock still gave positive returns in the ongoing financial year as the retail holding went up.
Out of these 64 scrips, we have filtered down 9 stocks that have more than doubled investor wealth in FY24 so far.
State-run Gujarat Mineral Development Corporation (GMDC) saw mutual funds nearly exiting the stock in the September quarter with a miniscule holding of 0.02% and FII reducing their stake from 3.08% to 1.89%. In the meantime, retail holding went up from 17.02% to 17.72% in Q2.
Smart money seems to have missed out on the multibagger bus as the stock has more than doubled in the last 3 months while FY24 return now stands at an impressive 208%.
Owned by the Gujarat government, the mining company had earlier increased its dividend for FY 2022-23 to Rs 11.45 per share.
“We believe the stock has more than factored in any probable benefits (of recent acquisition of two merchant coal blocks), which will accrue after four-five years and, hence, does not provide any upside,” Nuvama said while giving a reduce rating on the stock.
2) Kalyan Jewellers
Kalyan Jewellers saw MF holding going down from 4.52% to 3.87% in Q2 and FII holding from 27.09% to 26.56%. Retail investors braved sell calls by the big boys to raise their stake from 3.79% to 4.99% in Q2. The jewellery stock, which is a long-term play on the shift from unorganised to organised retail, is up 197% in FY24.
In the September quarter, the company reported 33% YoY growth in its standalone revenue to Rs 7,395 crore.
3) Inox Wind Energy
Inox Wind Energy, which is engaged in the manufacturing and sale of wind turbine generators and erection, procurement and commissioning services, had retail investors raising their stake to 9.38%.
The multibagger stock has given nearly 3 times return to investors in FY24 but FIIs pared stake to 4.87% in Q2. MFs owned a 1.2% stake in the company at the end of the September quarter.
Inox Wind Energy (IWEL) is the holding company of the group’s wind business. With an aim to simplify the corporate structure, IWEL is undergoing an amalgamation into Inoz Wind. The merger was approved in Q1 and the company intends to unlock synergies and operational efficiency with a simplified renewables business structure.
4) Pitti Engineering
Retail ownership in Hyderabad-based Pitti Engineering, which manufactures electrical steel laminations and other products, went up to nearly 20% in Q2. MF holding, on the other hand, reduced to 2.37% while FIIs sold more stocks in the quarter to bring their ownership down to 0.13% in the multibagger stock.
In the September quarter, the company’s profit jumped 122% YoY to Rs 22.5 crore. Phillip Capital sees the stock rallying up to Rs 940 on strong industry tailwinds such as India building 800 Vande Bharat trains by 2030, EV sales CAGR of 49% over FY22-30 to 10mn units and China+1 playing out as a big theme for the fabrications business.
5) Angel One
The stock broking firm, which is seen as a big beneficiary of rising financialisation of savings in India and increasing retail interest in derivative trading, has seen its client base expanding by 49.6% YoY, to 17.78 million in October.
Up 68% in the last 3 months, shares of Angel One have rallied over 155% so far in the fiscal year.
6) Ujjivan Small Finance Bank
The small finance bank saw retail shareholding surging from 8.54% to 10.54% in Q2 with the stock more than doubling wealth in FY24.
After the lender reported decent performance across parameters led by asset quality and lower opex, Centrum Broking has marginally revised earnings estimate upwards for FY24/FY25 and rolled over to 1HFY26 multiple resulting in a revised target price of Rs65.
7) Hindustan Construction Company (HCC)
Mutual fund ownership in this civil construction smallcap stock went down to 1.14% in Q2 while FIIs also sold to bring down the stake to 3.54%. Retail bulls raised their stake, in the meantime, from 8.54% to 10.54%.
8) Sandhar Technologies
Sandhar Technologies, which supplies components to automotive OEMs, reported decent numbers in Q2 with revenue growth of 18.6% YoY and improved EBITDA margins at 9.1%.
“The deepening of reach in the EV space would further add to the revenues going forward. Overall, the investments done in the past are fructifying now, with the conviction that the pace of growth should continue in FY25 as well. Growth across the revenues and expansion of margins would enhance the RoCE of the company going forward,” Progressive Share Brokers said.
9) Motilal Oswal Financial
In the case of Motilal Oswal Financial Services, both FII and MF pared stakes marginally in Q2 while retail raised it to 7.34%. The stock has zoomed 103% in FY24 so far.
(Data inputs: Ritesh Presswala)
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