The 180 percent returns that TCPL Packaging has had this year its best annual performance since 2014, during which it gained over 450 percent.
What is common between TCPL Packaging, Karnataka Bank, Rossell India, Himadri Specialty Chemicals and Titagarh Wagons? All five stocks doubled or more than doubled this year.
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They have also benefitted mutual fund houses that exclusively held these stocks are part of their various schemes.
Let us first take a look at these five stocks and the MF houses that exclusively held them: (data provided by Nuvama)
|Stocks||Returns in 2022||Held by|
|TCPL Packaging||191.29%||DSP Mutual Fund|
|Karnataka Bank||144.44%||ITI Mutual Fund|
|Rossell India||118.26%||Quant Mutual Fund|
|Titagarh Wagons||126.89%||HDFC Mutual Fund|
|Himadri Specialty Chemicals||122.31%||Quant Mutual Fund|
TCPL Packaging is a leading supplier to the tobacco, liquor, consumer goods and food packaging industry in India. The stock, with a market capitalisation of Rs 1,368 crore, has nearly tripled this year.
In the most recent quarter, TCPL's revenue increased 43 percent to Rs 361.7 crore, aided by higher volumes and better realisations in the domestic and export markets. The management on the earnings call said that the long-term trend for the industry remains very buoyant as the industry is expected to witness huge growth as India moves towards self-reliance in manufacturing across various businesses.
TCPL Packaging is held by the DSP Mutual Fund, which has the stock as part of its DSP Core Fund and the DSP Smallcap Fund. However, over the last three years, the core fund has pared its stake to 2.35 percent from 5.16 percent. On the other hand, the smallcap fund has increased its stake from 1.46 percent to 1.79 percent. TCPL's annual returns this year were the best since 2014.
Shares of the private lender have also doubled this year, outperforming most of its banking sector peers.
In an interaction with CNBC-TV18 on December 12, the bank's MD & CEO Mahabaleshwara MS, said that he expects loan growth for the lender to be in the mid-teens for the current financial year. Expressing caution but optimism over net interest margins (NIMs), the chief said that NIMs for the year could be in the range of 3.4-3.6 percent.
Shares of Karnataka Bank are held by ITI Mutual Fund, which holds just over 10.2 lakh shares worth nearly Rs 15.7 crore.
As per its latest shareholding pattern, even LIC has a 4.68 percent stake in the lender. Karnataka Bank's shares did their best in a decade.
Starting as Rossell Tea, the company added aviation and defence manufacturing to its businesses recently to pursue growth. With a market capitalisation of over Rs 1,100 crore, the company recently approved the demerger of its defence and aerospace business into a separate entity.
Quant Mutual Fund is the only domestic mutual fund that has a stake in the company. Over the last three years, it has consistently increased its stake from 0.26 percent to 1.77 percent. As of date, the fund owns close to 7.7 lakh shares of the company worth nearly Rs 24 crore. The last instance of Rossell India's shares doubling in a calendar year was in 2014.
The manufacturer of freight wagons and passenger coaches has also seen its stock double its shareholder returns this year. The company currently has a market capitalisation of Rs 2,600 crore and is trading near its record high.
Titagarh Wagons has turned out to be a winner for HDFC Mutual Fund, which has held the stock as part of its various schemes. Through these funds, HDFC Mutual Fund currently holds close to 7 percent stake in the company, which, at current market price, is valued at over Rs 170 crore.
In an interaction with CNBC-TV18 last month, Umesh Chowdhary of Titagarh Wagons mentioned that the company would target a metro car production figure of 200-250 yearly. Chowdhary also spoke about sustainable EBITDA margin, which he expects to be in the 8-10 percent range.
Titagarh's 127 percent surge in a year is its third-best in a decade after the record-breaking years of 2014 and 2015.
Himadri Specialty Chemicals
The last on our list is the manufacturer of carbon materials and chemicals. This has turned out to be another winner for Quant Mutual Fund, which holds close to 21 lakh shares of the company, valued at Rs 21 crore.
In the September quarter, the company achieved record sales of Rs 1,059 crore. This was the second straight quarter of the company's sales crossing the Rs 1,000 crore mark.
The company also managed to reduce its long-term debt and working capital days from 153 in the financial year 2021 to 108 days.Shares of the company have doubled for the first time after 2016.
Some special mentions
A special mention for the shares of Venus Pipes, which have also doubled this year. However, the stock went public only in June, and we are considering only the full calendar year performance.
However, there are some stocks that may have not doubled but have still given substantial returns to the mutual fund houses that exclusively hold them.
|Stocks||Returns in 2022||Held by|
|Mirza International||91.90%||HDFC MF|
|GMDC||97%||Mahindra Manulife MF|
|Fineotex Chemicals||83.35%||Nippon India MF|
|Jash Engineering||88%||Quant MF|
First Published: Dec 30, 2022 8:48 AM IST
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