Markets tumbled to their 10-year low on May 17, 2004, and then touched a peak of 6,679 points on January 3, 2005. During this period, the market capitalisation of some stocks changed drastically, which triggered a good amount of churning among the fund portfolios. Let's take a closer look at the funds' portfolios and see who was able to identify the rising stocks. The following five mid-cap stocks became large-caps between May 2004 and December 2004. A closer look.
|Price on March 17 (Rs)|| ||700.05
Market Cap (Rs cr)|| ||5600.40
Sales (Rs cr)|| ||2090.20 (up 22%)
Net Profit (Rs cr)|| ||251 (up 30%)
Industry|| ||Electronic Equipments
Sector|| || Technology
Its stock price has jumped by more than 62 per cent since May 2004. Bharat Electronics manufactures state-of-the-art electronic products in the field of defence electronics like communications, radars and strategic components. It is a widely held stock with 48 funds invested in it as on December 2004. Prudential ICICI and HDFC Mutual have been very bullish on the stock and they have substantially increased their holdings in this stock. Since May 2004, the stock price has moved up gradually every month. In July, it jumped 16 per cent, which attracted many funds, and as many as 59 funds had their investments in Bharat Electronics at the end of the month. DSPML has maintained a steady exposure to the stock through DSPML Opportunities, DSPML Technology.com and DSPML Top 100 Equity. UTI Mutual, Birla Sun Life, Reliance Mutual and Franklin Templeton have been booking profits by selling off a portion of their investments every month. SBI MF sold off its holdings in Magnum IT in November.
CONTAINER CORPORATION OF INDIA
|Market Cap (Rs cr)|| ||5558.27|
|Sales (Rs cr)|| ||1450.60 (up 14%)|
|Net Profit (Rs cr)|| ||311.80 (up 26%)|
|Industry|| ||Transport Support Services|
|Sector|| || Services|
Its stock price appreciated by 75 per cent during this period with a 32 per cent jump in December. CONCOR was set up in 1988 to satisfy customer's needs for high-quality, cost-effective logistics services. It has a network of over 40 terminals, offering scheduled and on demand rapid rail and road services between the hinderland and ports, and between major metros. Eleven fund houses are invested in this stock as on December 2004. Together they hold nearly 26.74 lakh shares, fifty per cent of these being held by HDFC Mutual. All the equity-oriented funds of HDFC are invested in this stock. Alliance Capital and LIC Mutual have maintained a static exposure to the stock since May. But they sold off a portion of their holdings during December to book profits in the rising market. DSPML and Prudential ICICI have remained bullish on this stock; they have been constantly adding small number of shares to their portfolios every month. Morgan Stanley Growth Fund sold a part of its holding in June, but since then it has maintained a steady exposure. Consequently, five fund houses including HDFC MF, UTI Mutual, Sundaram, Kotak and Principal reduced their holdings in October.
|Market Cap (Rs cr)|| ||7466.11|
|Sales (Rs cr)|| ||1463 (up 10%)|
|Net Profit (Rs cr)|| ||427 (up 34%)|
|Industry|| || Other Non-Ferrous|
|Sector|| || Metals & Metal Products|
Hindustan Zinc is up by more than 100 per cent during this bull-run. It is one of India's leading zinc producers and is a part of Vedanta Resources. Vedanta Resources is listed on London Stock Exchange and is metals and mining major with aluminium, copper and zinc operations in UK, India and Australia. Funds have taken a liking to this fund in the recent past. In May 2004, only nine funds had invested in this stock but by December 2004, 24 funds were invested in the scrip. Canbank, Sahara and Tata Mutual entered the fund in July. Since then, Canbank Mutual has maintained the same exposure in this stock. By January 2004, ABN Amro, Deutsche, HDFC, HSBC and ING had booked profits and completely exited from the stock. Ten fund houses still hold positions in the stock with Reliance Mutual holding the maximum of 13.38 lakh shares.
NICHOLAS PIRAMAL INDIA
|Price on March 17 (Rs)|| ||257.00|
|Market Cap (Rs cr)|| ||976.60|
|Sales (Rs cr)|| ||1030.70 (up 22%)|
|Net Profit (Rs cr)|| ||182 (up 65%)|
|Industry|| || Drugs & Pharma|
|Sector|| || Health Care|
Nicholas Piramal India has given a handsome return of over 114 per cent from May to December 2004. It is a leading pharmaceutical company in India with presence in both domestic and exports market. Thirty-nine funds hold approximately 47.43 lakh shares as on December 2004. Nearly half the shares are held by nine funds of UTI Mutual Fund. The other investors in this stock are Tata, Kotak Mahindra and Prudential ICICI. Tata and Kotak have stuck to their investments in this stock. Prudential ICICI booked profits by selling off a significant portion during October.
STERLITE INDUSTRIES (INDIA)
|Price on March 17 (Rs)|| ||740.80|
|Market Cap (Rs cr)|| ||2659.47|
|Sales (Rs cr)|| ||2839.20 (up 30%)|
|Net Profit (Rs cr)|| ||145.80 (up 18%)|
|Industry|| || Other Non-Ferrous Metal|
|Sector|| || Metals & Metal Products|
Sterlite Industries appreciated by nearly 45 per cent during this period. This company is a part of the Vedanta Resources. It is a large player in copper and aluminium. The company has benefited from higher prices of both metals. Not many funds were able to identify this opportunity and only HSBC Mutual held on to the stock throughout these seven months. It maintained more or less the same exposure in HSBC Equity, and added more to HSBC India Opportunities in August 2004. DSPML Top 100 Equity exited from the stock in September, and cashed some gains. The stock had appreciated by nearly 22 per cent by then. Deutsche Investment Opportunity invested in Sterlite only for a month. ABN Amro Equity has remained invested in this stock since its launch in September 2004. Tata Mutual was a late entrant but three of its equity funds still have a holding. Reliance Vision and Kotak 30 also invested in the fund during September. Since then, they have been gradually selling off a portion of their investments and booking profits.
Sales and Net Profit are for nine months ending December 31, 2004. The percentage change is for the previous corresponding period.