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Time of India
9 hours ago
- Business
- Time of India
The great Adani bet: Mutual funds & LIC are buying what GQG, FIIs are selling
Mutual funds are signaling growing acceptance of Adani stocks, emerging as net buyers in seven out of 10 Adani counters during the June quarter even as foreign institutional investors ( FIIs ) staged a broad-based retreat from the conglomerate's shares. On the other hand, India's largest domestic institutional investor LIC added 2 Adani stocks while US-based GQG Partners sold 3 of them. The contrasting moves by domestic and foreign money managers reflect how domestic investors are increasingly willing to bet on the recovery story while overseas investors remain cautious. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Relive the Bollywood 2025 moments that went viral Learn More Undo Mutual funds demonstrated their renewed confidence by raising stakes across multiple Adani entities. The most dramatic increase came in Adani Energy Solutions, where MF holding surged by 74 basis points to 3.19% in the June quarter from 2.45% in March. The buying spree extended to other key group companies. MFs increased their stake in Adani Green Energy by 50 basis points to 1.51%, while Adani Ports saw a 40 basis point jump to 5.42%. Adani Enterprises witnessed an 18 basis point increase to 2.67%, and Adani Power gained 12 basis points to reach 1.76%. Even cement majors under the Adani umbrella attracted MF interest, with Ambuja Cements seeing a 10 basis points increase to 7.91%. The only notable reduction came in ACC, where MF holding dropped by 222 basis points to 12.07%. Live Events LIC selectively adds cement assets Life Insurance Corporation of India (LIC) took a more selective approach, focusing primarily on the group's cement assets. LIC significantly boosted its stake in ACC by 142 basis points to 9.11% and raised its position in Ambuja Cements by 125 basis points to 6.80%. However, the state-owned insurer trimmed its holding in Adani Green Energy marginally by 4 basis points to 1.32%, while maintaining unchanged positions in other group companies. GQG stages strategic exit In contrast to domestic buying, Rajiv Jain-led GQG Partners did a strategic reduction in Adani exposure. The US-based investment firm sold stakes in Adani Green Energy, reducing its holding by 13 basis points to 4.36%, and pared its position in Adani Power by 4 basis points to 5.06%. Most notably, GQG's name disappeared entirely from Ambuja Cements' shareholder list, where it previously held a 1.42% stake in March. The firm either sold its complete holding or saw its stake fall below the 1% disclosure threshold required for regulatory filings. GQG maintained static positions in Adani Energy Solutions at 5.23% and Adani Enterprises at 3.84%, while marginally increasing its Adani Ports holding by 3 basis points to 3.96%. Also Read | Jefferies unleashes value hunt: 11 buy stocks including 3 Adani bets as India market hits stretched valuations FII exodus continues Foreign institutional investors maintained their bearish stance, reducing holdings in eight out of 10 Adani stocks. The heaviest selling was witnessed in Adani Energy Solutions, where FII stake dropped by 173 basis points to 15.85%, followed by Ambuja Cements with a 117 basis point decline to 7.43%. Adani Green Energy saw FII holding fall by 87 basis points to 11.58%, while other group companies including Adani Total Gas, ACC, and Adani Enterprises witnessed more modest reductions. The only bright spots for FII interest were Adani Ports, where holdings increased by 10 basis points to 13.53%, and Adani Power with a similar 10 basis point gain to 12.46%. The analysis excludes AWL Agri Business, formerly known as Adani Wilmar, as the Adani Group has exited the Fortune Oil maker, removing it from the conglomerate's portfolio of listed entities. What should investors do? The foreign selling spree may reflect broader market dynamics rather than company-specific concerns. GQG and other FIIs' stake reduction could stem from profit booking amid geopolitical uncertainty, valuation discomfort, and a sluggish earnings recovery across Indian markets. Adding credibility to the domestic buying thesis, Jefferies recently included two Adani stocks—Adani Energy Solutions and Adani Ports—in its list of 11 value picks. "Adani Energy Solutions is growing 3x+ faster than Power Grid (PGCIL) with 34% EBITDA CAGR in FY25-27E vs 9% for PGCIL. The stock is at a 79% discount to its Jan. 2023 peak 1-yr forward EV/EBITDA and valuation premium to PGCIL has reduced to 50% vs 991% in Jan. 2023," Jefferies noted, setting a price target of Rs 1,150 based on 15x EV/EBITDA FY27E. On Adani Ports, the brokerage estimates "16% FY25-28E EBITDA CAGR led by 14% FY25-28E CAGR in volumes with commissioning/stabilization of operations at new ports." The stock trades at 16.6x FY26E EV/EBITDA, similar to its long-term average and at a 38% discount to JSW Infrastructure . The conglomerate's financial muscle is evident in its aggressive fundraising drive. The apple-to-airport empire has already mobilized over $3.2 billion in the first six months of 2025, positioning itself to complete a massive $5 billion fundraising blitz by FY26. An additional $2 billion is planned for FY26 across Adani Green and Adani Enterprises. This capital raising frenzy supports Chairman Gautam Adani's most ambitious expansion blueprint. "The Adani Group plans to invest a record USD 15-20 billion across businesses over the next five years to chart out the next phase of growth," Adani declared at last month's AGM, highlighting the conglomerate's "strong balance sheet and robust business to shrug off relentless scrutiny it faces." The group's financial metrics support this confidence. In FY25, the conglomerate's combined profit after tax surged to an all-time high of Rs 40,565 crore, while EBITDA scaled to Rs 89,806 crore, up 8.2% year-on-year. High profit growth has driven leverage reduction, with portfolio-level net debt to EBITDA falling from 3.8x in FY19 to 2.6x currently. Also Read | Adani Group to invest $15-20 bn across businesses over next 5 yrs: Gautam Adani (Data: Ritesh Presswala) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
10 hours ago
- Business
- Business Standard
Brigade Hotel Ventures IPO opens today; GMP up 9%; should you subscribe?
Brigade Hotel Ventures IPO opens for public subscritpion: Hotels chain operator Brigade Hotel Ventures is set to launch its initial public offering (IPO) today, July 24, 2025. At the upper end, the company seeks to raise ₹759.60 crore from the public issue, which comprises an entirely fresh issue of 84.4 million equity shares. Brigade Hotel Ventures has announced that it has already raised ₹324.72 crore from the anchor investors on the bidding concluded on July 23. The anchor book saw participation from investors, including SBI Mutual Fund (MF), 360 One MF, Axis MF, Motilal Oswal MF, Bandhan MF, Edelweiss MF, and Nuvama MF. The brokerages remain optimistic on the public offering of Brigade Hotel Ventures for the long-term investment outlook, citing the company's expansion and improving financial performance. Here are the key details of Brigade Hotel Ventures IPO: Brigade Hotel Ventures IPO price band, lot size Brigade Hotel Ventures IPO is being offered at a price band of ₹85–90 per share, and a lot size of 166 shares. Thus, the investors can bid for a minimum of 166 shares and in multiples thereof. A retail investor would require ₹14,940 to bid for one lot or 166 shares of Brigade Hotel Ventures IPO. A retail investor can, however, bid for a maximum of 13 lots or 2,158 shares of Brigade Hotel Ventures IPO with an investment of ₹1,94,220. Brigade Hotel Ventures IPO grey market premium (GMP) The unlisted shares of Brigade Hotel Ventures were commanding a decent premium in the grey markets ahead of the opening of their public issue on Thursday. Sources tracking unofficial market activity revealed that Brigade Hotel Ventures shares were trading at ₹98 apiece, reflecting a grey market premium (GMP) of ₹8 or 8.89 per cent over the upper price band of ₹90. Brigade Hotel Ventures IPO timelines The three-day subscription window to bid for the Brigade Hotel Ventures IPO is likely to close on Monday, July 28, 2025. Following that, the basis of allotment of Brigade Hotel Ventures IPO shares is expected to be finalised on Tuesday, July 29, 2025, and shares will be credited to successful allottees' demat accounts on Wednesday, July 30, 2025. Shares of Brigade Hotel Ventures are set to make their D-Street debut tentatively on Thursday, July 31, 2025. Brigade Hotel Ventures IPO registrar, lead manager Kfin Technologies serves as the registrar for the Brigade Hotel Ventures IPO, while JM Financial is the sole book-running lead manager for the issue. Brigade Hotel Ventures IPO objectives The company proposes to utilise the proceeds from the public issue for the repayment or prepayment, either in full or in part, of certain outstanding borrowings availed by the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited. A portion of the proceeds will also be used for the payment of consideration towards the purchase of an undivided share of land from the Promoter, BEL. Additionally, the funds will support the company's inorganic growth plans through potential unidentified acquisitions and other strategic initiatives. The remaining proceeds will be allocated towards general corporate purposes. Should you subscribe to Brigade Hotel Ventures IPO? Canara Bank Securities – Subscribe for long-term Analysts at Canara Bank Securities have recommended that investors bid for the Brigade Hotel Ventures IPO with a long-term outlook. "Its high occupancy, strategic alliances with global hotel chains, strong brand equity, and premium location focus enhance its long-term prospects." Brigade Hotel Ventures IPO is valued at a steep P/E of 125x and P/B of 32.26x (FY25), which the analysts said is well above the industry averages of 92.53x and 4.95x respectively. "We recommend a Subscribe rating only for well-informed investors with a long-term outlook, given the company's aggressive expansion, improving financial performance, and strategic advantage in high-growth hospitality corridors," wrote the analysts in their report. SBI Securities – Subscribe for long term Brokerage firm SBI Securities has also recommended investors to subscribe to the issue at the cut-off price for the long term. The brokerage, in its report, highlighted that the company has demonstrated strong financial growth, with a CAGR of 15.6 per cent in revenue, 30 per cent in Ebitda, and 73.2 per cent in PAT over FY23–FY25. However, it also noted that the company has a negative Reserves & Surplus of ₹196 crore as of March 2025, owing to accumulated losses in the past. "Out of the total IPO proceeds of ₹760 crore, BHVL will utilise approximately ₹468 crore towards debt repayment, which will lead to a reduction in the debt-to-equity ratio to below 1.0x from the current 7.1x, and an improvement in profitability as interest cost savings of ₹45 crore will flow through the P&L. Going forward, trends in occupancy levels and average room rates (ARR) of the company will be key monitorables," said the brokerage in its report. "At the upper price band of ₹90, BHVL is valued at a FY25 EV/Ebitda of 19.8x. We recommend subscribing at the cut-off price for the long term." About Brigade Hotel Ventures Brigade Hotel Ventures Limited is an owner and developer of hotels in key Indian cities, with a primary focus on South India. The company is the second-largest owner of chain-affiliated hotels and hotel rooms in South India—including the states of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, and the Union Territories of Lakshadweep, Andaman and Nicobar Islands, and Puducherry—among major private hotel asset owners (defined as investors owning at least 500 rooms across India).
Economic Times
a day ago
- Business
- Economic Times
Blinkit & you miss it! FIIs said no to Eternal, retail said wait; who said yes?
Bluechip Nifty stock Eternal has left FOMO in both FIIs and retail investors after Q1 numbers held investors spellbound, but the real winners were mutual funds who saw the quick-commerce goldmine when others couldn't. ADVERTISEMENT Foreign institutional investors (FIIs) have been relentlessly cutting their Eternal stake, with FII holding tumbling from 44.4% to 42.3% in the June quarter alone, marking the seventh consecutive quarter of foreign selling. In March 2024, foreigners owned a commanding 55.1% stake. The company had earlier capped foreign ownership at 49.5% to pave the way for Blinkit to move away from a pure marketplace model and start holding inventory directly, but FIIs were already heading for the exits. Retail investors weren't far behind in their pessimism. Individual shareholders with nominal holdings up to Rs 2 lakh reduced their stake from 6.40% in March 2025 to 5.50% in June quarter. The retail investor count itself crashed from 27,49,779 to 24,57,980 in just three months—nearly 300,000 investors throwing in the towel. Also Read | Eternal share price target goes up to Rs 400! What brokerages said after Q1 results But while FIIs and retail were selling, mutual funds were quietly building their war chest. MF ownership in Eternal surged from 15.5% in December 2024 to 21.6% in June 2025, a massive vote of confidence that's now paying spectacular dividends. ADVERTISEMENT Part of the MF optimism stemmed from passive fund buying following Eternal's inclusion in the Nifty from March 2025, but active fund managers also clearly spotted the Blinkit Q1 results vindicated the MF strategy spectacularly. Blinkit surprised with 140% year-on-year growth in GMV, prompting Goldman analysts to declare that "the Street is under-appreciating market share gains for Blinkit over the next 2-3 quarters as competition focuses on improving profitability, with potential for further share gains beyond FY26 on the back of the new 3k store guidance." ADVERTISEMENT Blinkit management's revelation that it will transition to an inventory-led model over the next 2-3 quarters after becoming an IOCC (Indian owned and controlled company) sent analysts into overdrive. This transition would aid approximately 100 basis points of margin expansion and increase working capital days from around 5 days currently to around 18 while upgrading the stock to buy, admitted it "overestimated the competitive threat." The brokerage handed out one of the highest target prices of Rs 400, saying: "Eternal is a play on the growing food services industry in India and increasing adoption of digital commerce. With only approximately 23 million monthly transacting users currently, Eternal's food delivery has a long runway for customer acquisition and revenue growth. Blinkit is the market leader in the fast-growing quick-commerce space and is set to see sharp margin improvement in the steady state." ADVERTISEMENT Emkay analysts echoed the bullish sentiment: "QCom has a long growth runway and Blinkit is seen capitalizing well on this. As QCom is currently in the 'landgrab' phase, we believe EBITDA breakeven for Blinkit is still some time away. Food delivery is likely to remain a cash cow for the company, and we expect the business to see 20%+ EBITDA CAGR over the long term." Also Read | Blinkit beats Zomato in NOV terms: 10 key takeaways from Eternal Q1 results (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
a day ago
- Business
- Time of India
Blinkit & you miss it! FIIs said no to Eternal, retail said wait; who said yes?
Live Events Blinkit's Blockbuster Quarter Changes Everything (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Bluechip Nifty stock Eternal has left FOMO in both FIIs and retail investors after Q1 numbers held investors spellbound, but the real winners were mutual funds who saw the quick-commerce goldmine when others couldn' institutional investors (FIIs) have been relentlessly cutting their Eternal stake, with FII holding tumbling from 44.4% to 42.3% in the June quarter alone, marking the seventh consecutive quarter of foreign selling. In March 2024, foreigners owned a commanding 55.1% company had earlier capped foreign ownership at 49.5% to pave the way for Blinkit to move away from a pure marketplace model and start holding inventory directly, but FIIs were already heading for the investors weren't far behind in their pessimism. Individual shareholders with nominal holdings up to Rs 2 lakh reduced their stake from 6.40% in March 2025 to 5.50% in June quarter. The retail investor count itself crashed from 27,49,779 to 24,57,980 in just three months—nearly 300,000 investors throwing in the Read | Eternal share price target goes up to Rs 400! What brokerages said after Q1 results But while FIIs and retail were selling, mutual funds were quietly building their war chest. MF ownership in Eternal surged from 15.5% in December 2024 to 21.6% in June 2025, a massive vote of confidence that's now paying spectacular of the MF optimism stemmed from passive fund buying following Eternal's inclusion in the Nifty from March 2025, but active fund managers also clearly spotted the Blinkit Q1 results vindicated the MF strategy spectacularly. Blinkit surprised with 140% year-on-year growth in GMV, prompting Goldman analysts to declare that "the Street is under-appreciating market share gains for Blinkit over the next 2-3 quarters as competition focuses on improving profitability, with potential for further share gains beyond FY26 on the back of the new 3k store guidance."Blinkit management's revelation that it will transition to an inventory-led model over the next 2-3 quarters after becoming an IOCC (Indian owned and controlled company) sent analysts into overdrive. This transition would aid approximately 100 basis points of margin expansion and increase working capital days from around 5 days currently to around 18 while upgrading the stock to buy, admitted it "overestimated the competitive threat." The brokerage handed out one of the highest target prices of Rs 400, saying: "Eternal is a play on the growing food services industry in India and increasing adoption of digital commerce. With only approximately 23 million monthly transacting users currently, Eternal's food delivery has a long runway for customer acquisition and revenue growth. Blinkit is the market leader in the fast-growing quick-commerce space and is set to see sharp margin improvement in the steady state."Emkay analysts echoed the bullish sentiment: "QCom has a long growth runway and Blinkit is seen capitalizing well on this. As QCom is currently in the 'landgrab' phase, we believe EBITDA breakeven for Blinkit is still some time away. Food delivery is likely to remain a cash cow for the company, and we expect the business to see 20%+ EBITDA CAGR over the long term."Also Read | Blinkit beats Zomato in NOV terms: 10 key takeaways from Eternal Q1 results (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
2 days ago
- Business
- Economic Times
Can PPFAS Flexi Cap Fund handle Rs 1 lakh crore money? CEO Neil Parikh explains
PPFAS Mutual Fund addresses concerns about managing a large AUM, emphasizing that stock limits apply at the fund level, not the scheme level. One should always look at the fund-level Assets Under Management (AUM) and not the scheme-level AUM, as individual stock limits are applicable at the fund level, not at the scheme level, said Neil Parikh, Chairman and CEO of PPFAS Mutual Fund, while responding to questions on how the fund will handle a large AUM and whether they can continue delivering the same kind of CEO posted on social media platform X that, 'How will they handle such a large AUM? Look at fund level AUM and not scheme level AUM as individual stock limits are at fund level, not scheme. So the best stock idea can have good allocation in one scheme instead of allocating the same idea in multiple schemes- basically dilute your best idea with multiple equity schemes. Our overall equity AUM is still less than 5% market share of total MF equity AUM. So this is not a concern. What will change is that there will be a longer tail of small cap stocks so the number of stocks may increase over time. Can they continue delivering the same kind of returns with all this new money? - Only time will tell' How will they handle such a large AUM? - look at fund level AUM and not scheme level AUM as individual stock limits are at fund level, not scheme. So the best stock idea can have good allocation in one scheme instead of allocating the same idea in multiple schemes- basically… — NEIL PARIKH (@npparikh6) July 21, 2025 Also Read | MF Tracker: Will Invesco India PSU Equity Fund shine again after topping 3-year charts? Neil believes that the fund house's best stock ideas can be given adequate allocation in a single scheme, rather than spreading the same idea across multiple schemes—essentially diluting it with several equity fund house also pointed out that its overall equity AUM remains under 5% of the total equity AUM of the mutual fund industry, indicating there is still significant room to grow and that this is not a CEO added that what will change is the inclusion of more small-cap stocks, leading to a higher number of holdings over time. As for whether the fund house can continue to deliver the same level of returns with this new influx of money, the response was: only time will tell. This post by Neil Parikh came in response to a concern raised by an investor who has been investing in the PPFAS Flexi Cap Fund for the past five to six years. In response to another query regarding SEBI's new categorisation and rationalisation norms and whether PPFAS would consider launching a second scheme in the same category, Neil said, 'We will continue with one fund… not in favor of adding more complexities.'When asked how much the US exposure helped the Flexi Cap Fund, Parikh explained that foreign exposure helps lower portfolio volatility and provides downside protection. 'Overseas portfolio returns have been similar to or slightly lower than the Indian portfolio since inception,' he added. Also Read | Mutual funds slashes cash allocation by Rs 13,000 crore in June; PPFAS and Quant MF join trend In May, the CEO informed the investors that the fund has crossed Rs 1 lakh AUM and is the first actively managed scheme to do so in India. Based on the last available portfolio (June 2025), it had an AUM of Rs 1.10 lakh crore from Rs 1.03 lakh crore in May. According to June data, PPFAS Mutual Fund had Rs 23,598 crore cash in its kitty which was 21.62% of the total AUM. The fund house had an equity AUM of Rs 93,171 crore. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
