Latest news with #PriyaRanjan
Economic Times
5 days ago
- Business
- Economic Times
HDFC Defence Fund increases stake in Bharat Dynamics and 3 others, trims exposure in 5 stocks in July
HDFC Defence Fund, the only actively managed fund focused on the defence sector, strategically adjusted its portfolio in July. HDFC Defence Fund, the only actively managed fund based on the defence sector, increased its stake in Bharat Dynamics and three other stocks whereas it reduced its stake in five stocks in July. Around 10.77 lakh shares of Bharat Dynamics were added to the portfolio taking the total number of shares to 17.10 lakh in July against 6.32 lakh in June. The other three stocks where the fund increased its stake were Bharat Forge, Data Patterns (India), and Astra Microwave Products. Also Read | Sectoral & thematic mutual funds see record jump in inflows to over Rs 9,400 crore. Is it time to enter or stay cautious? The fund added around 1.64 lakh shares of Bharat Forge in July, followed by 1.63 lakh shares of Data Patterns (India) and 1.33 lakh shares of Astra Microwave Products. The exposure in five stocks was reduced in the said period which includes BEML, Diffusion Engineers, Rishabh Instruments, Power Mech Projects, and JNK India. Among these five stocks, the maximum number of shares of JNK India were offloaded from the portfolio of around 1.40 lakh and only 4,274 shares of Power Mech Projects were sold from the portfolio. In July, only one new stock was added to the portfolio. Around 1.38 lakh shares of Cummins India were added to the portfolio in the said period. The fund made a complete exit from Bansal Wire Industries by selling 2.65 lakh shares in July. The exposure in 15 stocks remained unchanged which includes Bharat Electronics, Larsen & Toubro, Centum Electronics, Cyient DLM, Hindustan Aeronautics, Interglobe Aviation, Dee Developments Engineers, Ideaforge Technology, and The Anup Engineering. The defence fund had the same number of stocks in its portfolio in July as in the June month portfolio. The fund had 24 stocks in its portfolio in fund had an AUM of Rs 6,497 crore in July compared to an AUM of Rs 7,055 crore in June. Also Read | Gold ETF inflows decline by 40% to Rs 1,256 crore in July. Here's why HDFC Defence Fund is an open-ended equity scheme investing in Defence & allied sector companies. This defence fund has an investment objective to provide long-term capital appreciation by investing predominantly in equity and equity related securities of defence and allied sector companies. Launched on June 2, 2023, the fund is benchmarked against Nifty India Defence - TRI and is managed by Rahul Baijal and Priya Ranjan. The allocation in the capital goods sector was around 61.84% in July, followed by 16.66% allocation in chemicals. The allocation in electricals, automobiles and ancillaries, infrastructure, and aviation was around 6.54%, 3.82%, 3.34%, and 2.41% respectively in the same the top 10 holdings, the fund had the highest allocation in Bharat Electronics of around 19.36%, followed by Hindustan Aeronautics of around 15.70% and Solar Industries where it had an allocation of 14.20%. The fund holds 52% in large cap, 8.08% in mid caps, 34.52% in small caps, and 5.38% in others. On a broader term, the fund holds 94.62% in equity and 5.39% in others. Also Read | Mutual funds boost cash allocation to Rs 2.06 lakh crore in July amid weak Q1 earnings On the performance front, the fund has delivered a return of 29.93% in the last three months and around 3.10% in the last one year. Since inception, the fund has delivered 45.63% CAGR. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
28-05-2025
- Automotive
- Time of India
Auto entering coexistence era of ICE and EVs, HDFC AMC's Priya Ranjan explains
Stating that ICE vehicles will remain dominant in several key segments, especially in commercial and entry-level passenger vehicles, Priya Ranjan – Fund Manager And Senior Equity Analyst, HDFC AMC , said we are in a 'coexistence era' where both technologies will evolve in parallel. Edited excerpts from a chat: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More Undo Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Let's start with the pulse of the auto sector. Where are we in the auto industry cycle, especially when it comes to 2-wheelers and 4-wheelers? 2W and passenger vehicles are more structural segments of the automotive universe and they generally have an upward trajectory over the long term but in the short term we sometimes see demand volatility due to changes in consumer confidence, interest rates and disposable income growth. Both the segments are driven by lower vehicle penetration in the medium to long-term. While we see some demand softness in passenger vehicle growth currently, 2W performance continues to be on an upward trajectory driven by rural growth. On the other hand, commercial vehicle segment is also witnessing a weak demand environment due to deceleration in economic activities as well as weakness in globe trade amidst the global tariff war. However, demand stimulus from government tax cuts, interest rate reduction and upcoming pay commission revision for government and PSU employees could propel urban and Passenger Vehicle demand. Thus, both 2W and PV could witness reasonable growth from a 1-2yrs perspective although near term PV demand may be lacklustre. You manage the HDFC Transportation and Logistics Fund. How are you positioning the portfolio today? Is it more towards four-wheelers, two-wheelers, or the unsung heroes in the ancillaries? We build our portfolio on a bottom-up basis without a specific preference for a particular segment. The idea is to diversify the fund across various segments and position the fund optimally to make the most of the divergent business cycles of 2Ws, 4Ws, CVs, Logistics etc. We usually position our portfolio with mix of auto and transport subsegments, including ancillary and logistics companies where we see healthy earnings growth potential and a business moat. Live Events EVs have dominated the headlines, but the numbers still show ICE vehicles holding strong. Are we witnessing a long transition phase, or is the EV narrative running ahead of itself? While EVs dominate news headlines, the ground reality is more nuanced. ICE vehicles continue to lead volumes across most categories, especially in rural and price-sensitive markets. This resilience is rooted in a mature support ecosystem, lower upfront costs, and better range reliability—factors that EVs are still catching up on. EV transition is in its nascent stage. Infrastructure rollout, battery technology, and cost parity will take time to mature. Meanwhile, ICE vehicles will remain dominant in several key segments, especially in commercial and entry-level passenger vehicles. We believe in businesses that are not only beneficiaries of today's ICE demand but are also laying the groundwork for the EV future—be it through R&D, partnerships, or product diversification. We view this not as a binary shift, but a 'coexistence era' where both technologies will evolve in parallel. From a valuation standpoint, how do you weigh high-growth but richly priced EV bets against legacy players that may be slower movers but trade at more reasonable multiples? From a valuation standpoint, we focus on balancing long-term growth potential with near-term earnings visibility and capital efficiency. EV-focused companies often command premium valuations, largely driven by their future promise. While some are backed by strong innovation and a first-mover advantage, many are yet to demonstrate consistent profitability or scale. We remain cautious about paying for narratives that may take years to materialize, especially when execution risks are high. How do you think India-UK FTA will impact some of our listed players? We anticipate the India-UK FTA to have a limited direct impact on most listed auto players, primarily due to the differing consumer profiles and market dynamics of the two countries. The UK automotive market caters largely to high-end, premium vehicles, whereas India is more focused on value-driven, mass-market segments. This divergence in consumer preferences means there is relatively little overlap in product offerings. Additionally, the UK has a relatively small automotive manufacturing base, especially when compared to the EU, which limits the potential for large-scale bilateral trade in vehicles or components. That said, niche opportunities may emerge for select Indian auto component exporters and suppliers to tap into the UK's aftermarket or specialized segments. Overall, while the FTA may ease some trade processes and tariffs, we do not expect a material shift in demand or export volumes for most mainstream Indian auto companies in the near term. How do interest rate moves impact the auto story? With more rate cuts expected in 2025, are we looking at a financing-driven demand boom? Financing is always an important factor for automotive accessibility across the globe and India is no exception. When interest rates decline, borrowing costs drop, making EMIs more affordable and widens access to credit—especially for price-sensitive consumers in entry-level and mid-segment vehicles. With potential rate cuts expected in 2025, we anticipate a strong financing-driven demand boost. Lower rates could unlock demand among first-time buyers and rural/ semi-urban consumers who have traditionally faced credit constraints. Commercial vehicle demand should also benefit as fleet operators take advantage of cheaper financing to expand or upgrade their fleets. There's also a consumption angle here. As incomes rise and rural demand improves, are you seeing any early signals of pickup in entry-level vehicles? Yes, we are witnessing early but encouraging signals of a pickup in entry-level vehicle demand, particularly in rural and semi-urban markets. This revival is being driven by a confluence of factors: improving rural incomes due to better crop realizations and MSP hikes, easing inflation, and targeted government schemes boosting rural employment and infrastructure. Normal/Above normal monsoon forecasts for 2025 also bode well for rural incomes and consequently, rural auto demand.
