Skip to main content

Beating lockdown blues: 20 stocks from top 5 PMS schemes gave 60-90% return in 6 months

PMS schemes that gave more than 50 percent return include Nine River Capital’s AURUM Smallcap theme that delivered nearly 95 percent return in the last six months.

When India was grappling with lockdown to avoid the spread of COVID-19, portfolio managers used the dip in March to stay with possible winners of the ‘Unlock’ scenario in the small & midcap space.

 

 

Indian market might have rallied by about 30 percent in the first six months of the current financial year, but as many as 80 Portfolio Management Schemes (PMSes) outperformed the index and 20 of them rose 50-100% in the same period, according to data from PMSBazaar.com.

 

 

PMS schemes that gave more than 50 percent return include Nine River Capital’s AURUM Smallcap theme that delivered nearly 95 percent return in the last six months. Top holdings include stocks like Intellect Design, Poly Medicure, CDSL, Astra Microwave and Alkyl Amines Chemicals.

 

 

Aurum Small cap opportunities strategy is built out of 12-15 high conviction small-cap stocks with a market-cap of more than Rs 2,500 crore and an investment horizon of 3-5 years for each stock.

 

 

The other PMS schemes which rallied more than 50 percent include Equirus Securities Long Horizon Fund. The fund focuses on making concentrated bets for the long term, in high quality publicly listed Indian companies at reasonable valuations.

 

 

 


 

 

Newgen Capital’s Smallcap Emerging Fund, and ACCURACAP PICOPOWER Smallcap fund delivered more than 70 percent returns each in the last six months.

 

 

Centrum Multibagger which is a Midcap focussed fund gave over 60 percent return in the last six months. The strategy focuses on buying value stocks in the Midcap space to create value over the long term compared to its benchmark BSE500.

 

 

The top holding of this fund includes Granules, APL Apollo, Vaibhav Global, and Astral Poly Technik Ltd etc. among others.

 

 

Will the rally continue in small & midcaps?

 

 

The large part of the outperformance came from the PMS schemes which invest primarily in the broader market space. Money managers are looking for growth and after 2 years of underperformance - small & midcaps are ready to shine, suggest experts.

 

 

With the government focussing primarily on the Make in India initiative, small & midcaps are more economy-linked companies and do well when the economy does well.

 

 

The initial part of outperformance which we have seen can be attributed to liquidity, but experts feel that staying invested in companies where growth outlook remain string could turn out to be wealth creators.

 

 

“As long as the market rally is driven by liquidity, small & midcap stocks will continue to underperform. Clear visibility of earnings improvement is of utmost importance for small & midcap stocks to outperform from hereon or even sustain this rally,” Arjun Mahajan Head Institutional Business at Reliance Securities told Moneycontrol.

 

 

“Few indicators such as improvement in power demand, credit card bills, e-way bills, railway freight, etc give an indication about possible earnings recovery, prudent investors may take a while to confirm the sustainability of this recovery,” he said.

 

 

Mahajan further added that we can essentially say that a strong rally of small & midcap is very much on the cards if backed by the sustained economic recovery.


Source - Moneycontrol.com

Comments

Post a Comment

Popular posts from this blog

Tata Realty looks to list 20 million sq ft of commercial assets as REIT

  The existing land bank has potential of 20 million sq. ft commercial development in the next three to four years, says CEO Sanjay Dutt Tata Realty and Infrastructure (TRIL) is planning to list its Real Estate Investment Trust (REIT) with a portfolio of 20 million sq ft of commercial assets in the next few years. This will be done after the portfolio is expanded from present 6.2 million sq ft to 20 million sq ft via new developments and acquisitions. Sanjay Dutt, managing director and chief executive officer of TRIL told The Economic Times that the existing land bank has potential of 20 million sq ft commercial development in the next three to four years. The portfolio may also include office spaces and data centre assets. He added that his team has looked at least four proposals from developers looking to monetise their portfolios including single assets and carved-out portfolios across the country. “We are targeting a 45-50 million sq ft in commercial portf...
Post a Comment
Read more

Max India shares fall 5% on relisting day

  Max India resumed trading on BSE and NSE on August 28. The company, earlier known as Advaita Allied Health Services Limited, is a part of the $3-billion Max Group. Even as the broader market sentiment was bullish, shares of Max India fell 5 percent on BSE on the day of its relisting. The stock debuted at Rs 80 on BSE but fell 5 percent soon to touch its lower price band at Rs 76 on August 28. Max India resumed trading on BSE and NSE on August 28. The company, earlier known as Advaita Allied Health Services Limited, is a part of the $3-billion Max Group. The new Max India is the holding company of Max Group’s senior-care business Antar and the skilling company Max Skill First. The relisting of Max India follows Max Healthcare’s listing last week. In a media release, the company said listings are the outcome of a comprehensive scheme announced last year that involved a series of transactions, including the demerger of KKR-backed Radiant Lifecare’s assets into Max ...
Post a Comment
Read more

Brokerages place bets on Titan, see double-digit upside in the stock

Titan can get benefits from the strong market share in the jewellery and wrist watches segment, mainly driven by a wide range of product portfolio catering mainly to the premium and value-added designer jewellery segment. After three consecutive sessions of losses, shares of Titan Company rose over a percent in morning trade on BSE on September 23. The company was dealt a severe blow by COVID-19 as the pandemic triggered strict lockdowns completely battered the retail sector. In the calendar year so far, shares of this one of the largest, most efficient and profitable specialty retailer in India are 7 percent down. The company reported a net standalone loss of Rs 270 crore for the quarter ended June 2020 as the COVID-19 pandemic hit business. The loss was higher than a CNBC-TV18 poll estimate of Rs 175 crore. Standalone revenue during the quarter declined 62.3 percent year-on-year to Rs 1,862 crore compared to the corresponding period last fiscal. Light at the end ...
Post a Comment
Read more