10 Small Cap Stocks bought by Mutual Funds in Feb 2019

Introduction

Which top 10 small cap stocks have been bought by the mutual fund companies in February 2019? What is the current total mutual fund holding in these small cap stocks? Why mutual funds have added these stocks? How are these stocks performing? SEBI has done the new categorization of stocks into large cap, mid-cap and small cap. The stocks from 250 onwards as per the market capitalisation are the small cap stocks.

Let’s study the recent actions of Small cap stocks in Mutual Funds:

  • Current MF holding means the total investment made by all the mutual fund companies in that company.
  • The worth of shares bought mean the new total investment done by all the mutual fund companies in that stock in the month of February 2019
Top 10 Small Cap Stocks Bought by Mutual Fund
Top 10 Small Cap Stocks Bought by Mutual Fund

Top 10 Small Cap Stocks

Key Financials of these 10 small cap stocks are here:

Market Cap, P/E, ROCE and ROE of Top 10 Small Cap stocks bought by Mutual Funds
Market Cap, P/E, ROCE and ROE of Top 10 Small Cap stocks bought by Mutual Funds

1. Chalet hotels ltd.

  • Industry: Hotels & Restaurants
  • Chalet Hotels Limited was incorporated in 1986 and is based in Mumbai, India. Chalet Hotels Limited develops, owns, and manages high-end hotels in India. Its hotel platform comprises five operating hotels, including a hotel with a co-located serviced residence, located in Mumbai, Hyderabad, and Bengaluru representing 2,328 keys under the JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance, and Four Points by Sheraton brands.
  • Other business areas- commercial and retail operations, and real estate development.

Strengths:

  • The company’s portfolio consists of high-end branded hotels, all strategically located in key metro cities of India.
  • Active asset management model for the hotels managed by Marriott which gives access to the latter’s management expertise, human resources and operational know-how. Also, due to this agreement, the company does not have to incur any promotional costs on brand promotion.
  • Hgher occupancy rate(70%) which is higher in comparison to the industry. Occupancy rate is one of the key metric to analyse hotel industry. A higher rate is better.
  • Chalet is having a backing of leading real estate developer, K.Raheja group. Therefore benefits from lower cost of land acquisition and of developing hotels.

Weakness:

  • The company is highly indebted, part of which will be paid from the IPO proceeds. As of December 31, 2018, the total outstanding borrowings were Rs. 2,586.39 crore.
  • It’s high degree of dependence on Marriott for branding and running the hotel operations increases vulnerability.
  • The business model is based on acquiring land and its further development, which requires significant capital expenditure.
  • It’s ability to raise funds and expansion plans may be curtailed by the already high levels of debt in the balance sheet.

2. Tube Investments of India Ltd

  • IndustryCycles and Accessories
  • A pioneer in the Cycles market, TI Cycles, formed in 1949, has constantly come up with new trends in line with evolving consumer needs. TI Cycles’ vision is “To be the most preferred brand in fitness, recreation & personal mobility solutions”. It strives to give its customers not only a bicycle but a lifetime experience.
  • TI Cycles have introduced fun and entertaining stores across the length and breadth of India. The company has been proactive and was first bicycle company to change the cycle retail landscape.

3. KEC International Limited (KEC)

  • Industry: Transmission towers
  • It was incorporated as Kamani Engineering Corporation in 1945 by Ramji M Kamani. KEC International, the flagship company in the transmission sector of the RPG Group, is a global leader in the power transmission engineering, procurement and construction (EPC) business. With global operations spanning over 20 countries, the company is present in India, UAE, Saudi Arabia, Libya, Ghana, Algeria, Afghanistan, Nigeria, Kazakhstan, Mali, Tajikistan, South Africa, Namibia, Mozambique, Ethiopia and Egypt among several other countries.
  • It is one of the largest Power Transmission EPC companies in the world. KEC is in the business of manufacture of transmission towers and erection and laying of power transmission lines on an EPC basis.
  • The company operates as a power transmission engineering, procurement, and construction company worldwide. KEC supplies towers and constructs transmission lines for the power transmission and distribution industry.

4. Kalpataru Power Transmission Ltd

  • Industry- Transmission Towers
  • Kalpataru Power Transmission (KPTL) incorporated in 1981 is engaged in the business of designing, testing, fabrication, erection and construction of transmission lines and sub-station structures on a turnkey basis across India and overseas. The company was incorporated under the name HT Power Structures- a private limited company. Company is promoted by Kalpataru Group which holds 67% of stake in the company.
  • The company is one of the leading companies in the field of Turnkey projects for EHV Transmission Lines up to and including 800 KV in India and Overseas.
  • Business area:
  • Civil Contracting, Power and Distribution Projects, Biomass Power, Oil & Gas Pipelines

5. Balrampur Chini Mills Ltd.

  • Industry: Sugar
  • Balrampur Chini Mills (BCML), incorporated in 1975, is one of the largest integrated sugar manufacturer in India.Its business portfolio consist of manufacturing and marketing of sugar, ethyl alcohol, ethanol, generation & selling of power & also manufacturing & marketing of organic manure.
  • The company in totality has nine sugar factories situated in Eastern Uttar Pradesh with average crushing capacity  of  73,500 tonnes per day. Its total saleable cogen power capacity is 126 Mega Watts, which supplied to Uttar Pradesh Power Corporation.
  • In 2006 BCML acquired Indo Gulf Industries that has a sugar cane crushing capacity of 3000 tonnes crushing per day (TCD) located in Maizapur, Eastern UP.
  • A new subsidiary was incorporated in 2007 — Balrampur Overseas — in Hong Kong to trade sugar in the international market.

6. NCC Ltd

  • Industry: Capital Goods
  • NCC earlier known as Nagarjuna Construction Company incorporated in 1990 is engaged in development of real estate. NCC projects stand on credentials of its work in various sectors such as Housing, Transportation, Power, water, Metals and Oil and gas. The company was listed in 1992.
  • The year 1995 saw NCC crossing a turnover of Rs. One billon. The Property Division was established in 1996 followed by the Transportation Division in 1998. The Water, Electrical, Power, Irrigation, Metals, Oil & Gas Divisions ere established subsequently. The GDRs, of the Company are listed on the Luxembourg stock exchange. The enormous trust placed by foreign institutional investors is reflected by the investment of US $ 100 million as on date by the Blackstone group of USA.
  • The Company has offices in Muscat (Oman) and Dubai (UAE) and has bagged projects in these countries.
  • Projects- Building and Housing, Transportation, Power&Electrical, Water&Irrigation

7. Blue Star Ltd

  • Blue Star is India’s largest central airconditioning company with an annual turnover of Rs 2800 crores, a network of 30 offices, 7 modern manufacturing facilities, over 1800 dealers and around 2700 employees. It has over a period of time established itself as an expert in the field of central airconditioning and commercial refrigeration.
  • Business of Blue Star-
  • Electro Mechanical Projects and Packaged Airconditioning Systems, Cooling Products, Professional Electronics and Industrial Systems
  • The Company offers comprehensive Electrical Contracting and Plumbing & Fire Fighting Services. Blue Star’s other businesses include marketing and maintenance of hi-tech professional electronic and industrial products.
  • Blue Star has business alliances with world renowned technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan; Eaton – Williams, UK; Thales e-Security Ltd., UK; Jeol, Japan and many others, to offer superior products and solutions to customers.

8. Carborundum Universal Ltd

  • Industry- Abrasives
  • Carborundum Universal, popularly known as CUMI, is engaged in manufacturing of coated and bonded abrasives, super refractories, electrominerals, industrial ceramics and ceramic fibres in India.
  • Incorporated in 1954, the company was formed as a collaboration between Murugappa Group, Carborundum Inc, USA, and the Universal Grinding Wheel Co of the UK.
  • Business- Abrasives, Ceramics, Electro minerals
  • The company operates its in-house research and development operations and collaborative research with foreign institutions in order to sustain its position in India and aboard.

9. Symphony Ltd

  • Industry- domestic appliances
  • Symphony Comfort Systems Ltd was incorporated on February 5,1988 as Sanskrut Comfort Systems Ltd. (SCS). The company commenced its operations in February 1988 with the manufacture of air-coolers. Achal Anil Bakeri has promoted it.
  • Symphony today has established itself as a world leader in evaporative air coolers. It is a joint stock, publicly held, listed company.
  • Best of the technology across the world has been procured and put to use for designing and developing the air coolers.

10. Dilip Buildcon Ltd

  • Industry- Capital goods
  • Dilip Buildcon Limited was founded in 1988 and is based in Bhopal, India.
  • Dilip Buildcon Limited, together its subsidiaries, engages in the development of infrastructure facilities on engineering, procurement, and construction (EPC) basis in India. It operates through two segments, EPC Projects and Toll Operations.

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