Abakkus Growth Fund-1 reduced stake in Balrampur Chini Mills and Ugro Capital.
Sunil Singhania-owned Abakkus Asset Management has acquired a fresh stake in three companies and raised the shareholding in seven in the quarter ended September 30, 2020.
Abakkus Asset Management manages its shareholding through Abakkus Emerging Opportunities Fund-1, Abakkus Emerging Opportunities Fund and Abakkus Growth Fund-1.
At the end of the September quarter, it had a stake in 17 mid and smallcaps.
It acquired fresh 3.49 percent stake in Route Mobile, the cloud communication platform provider. Abakkus Emerging Opportunities Fund-1 picked up 1.41 percent and Abakkus Growth Fund-1 2.08 percent in Route Mobile through the IPO route. The numbers of shares held by the schemes indicate that they could be more bullish on the stock.
"Newly listed Route Mobile might be a good choice due to higher operating margin along with decent topline and sustained business growth," Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.
Abakkus Emerging Opportunities Fund-1 also acquired a fresh 1.70 percent stake in water and environment management solutions provider Ion Exchange (India), while Abakkus Growth Fund-1 bought 1.32 percent shareholding in Lux Industries, a textile company.
"The portfolio has some good textile-related stocks which include Siyaram Silk Mills and Lux Industries, which might surprise with their returns and hence they can be held for the long term," Garg said.
Ion Exchange (India) has strong fundamentals and the current market price justified its intrinsic price, he said, adding the company had the potential to generate returns in the coming quarters.
Abakkus Asset Management company raised stakes in seven companies in the September quarter. These are IIFL Securities, Polyplex Corporation, Sadbhav Engineering, Anup Engineering, Jindal Stainless (Hisar), Mastek and HIL.
The fund house's biggest bet is Mastek, in which it increased its stake to 5.87 percent in Q2FY21 from 5.72 percent in Q1FY21 through Abakkus Emerging Opportunities Fund-1 and Abakkus Growth Fund-1.
The second-highest shareholding is in Anup Engineering, in which Abakkus Emerging Opportunities Fund-1 raised stake to 5.46 percent from 4.94 percent in the June quarter.
Garg said Anup Engineering, which deals in manufacturing and fabrication of engineering goods, was one of the finest stocks in the portfolio and was a long-term-hold.
Among others, Abakkus Asset Management increased shareholding in IIFL Securities, Polyplex Corporation, Jindal Stainless (Hisar), Sadbhav Engineering and HIL by 0.17 percent, 0.03 percent, 1.22 percent, 0.19 percent and 0.08 percent to 3.24 percent, 1.43 percent, 3.32 percent, 1.42 percent and 1.82 percent, respectively, in the September quarter.
"IIFL Securities might be a dark horse for the portfolio, as substantial growth is witnessed in the broking business. Also, there is a lot of untapped potential in the Indian market," Garg said. Metal stocks were showing some strength and exposure in Jindal Stainless (Hisar) was a good opportunity to generate considerable returns.
However, Abakkus Growth Fund-1 reduced stake in Balrampur Chini Mills and Ugro Capital. Its stakes in ADF Foods, HSIL, Siyaram Silk Mills, Somany Home Innovation and Xchanging Solutions remained unchanged during the quarter.
"ADF Foods is good to hold as it has shown substantial growth over the last few years. The stock is now trading near 52-week high and is in over-bought zone, which might result in mild profit-booking," Garg said.
In the financial year 2020-21, so far, seven scrips—ADF Foods, Polyplex Corporation, Route Mobile, Xchanging Solutions, HIL and Mastek—of the 17 stocks are trading with 130-321 percent return.
Balrampur Chini, HSIL, IIFL Securities, Ion Exchange, Lux Industries, Sadbhav Engineering and Anup Engineering are trading with 21-90 percent return, while Siyaram Silk Mills, Somany Home Innvoation and Ugro Capital are in the red.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.