These small-cap stocks that MFs love generate significant revenue from exports
Export oriented stocks are likely to benefit from government policy, manufacturing of goods for export and the potential to increase employment, leveraging India’s cost benefit arbitrage in services, assisting in promoting inbound tourism and providing cost-effective world-class healthcare facilities
Over the last one year, sector and thematic mutual funds caught the investors’ attention and as a result, they received the highest inflows of Rs 1.2 lakh crore among all categories. Mutual fund companies have begun introducing new schemes such as Business Cycle, Innovation and Manufacturing in an attempt to capitalise on the positive sentiment.
2/19
The latest one in the cart is export opportunities. HSBC mutual fund has launched HSBC India Export Opportunities Fund (HEOF) that invests in the companies deriving sizeable income from the exports of goods and services. With more than 10 years track record, ICICI Prudential Exports and Services Fund (IESF) is the only existing scheme in the industry following the similar investment strategy. It is likely that other fund houses too launch new schemes with similar investment strategy.
3/19
According to HSBC India mutual fund, India has been one of the fastest growing services export country globally and its exports have been consistently scaling up. By 2030 India’s target for export is USD 2 trillon which reflects a strong 15 percent CAGR as against the 10 percent of the Nominal GDP growth rate. These schemes look for those companies that can benefit from government’s policy, manufacturing export goods and having potential to increase employment, leveraging India’s cost benefit arbitrage in services, assisting in promoting inbound tourism and providing cost effective world class healthcare facilities. Here are the top small-cap export oriented stocks that active equity mutual fund schemes hold, as per data provided by the ACEMF. Percentage of export revenue to the operating revenue that was more than 80 percent taken into account (consolidated basis). Portfolio data as of August 2024. Financial result data as of June 2024.
Company name: Suven Pharmaceuticals Percentage of export revenue to the operating revenue: 58 No. of active schemes held: 90 Sector: Pharmaceuticals & Biotechnology
6/19
Company name: Zensar Technologies Percentage of export revenue to the operating revenue: 42 No. of active schemes held: 88 Sector: IT – Software
Company name: Aster DM Healthcare Percentage of export revenue to the operating revenue: 35 No. of active schemes held: 278 Sector: Health Care Services
8/19
Company name: Gokaldas Exports Percentage of export revenue to the operating revenue: 35 No. of active schemes held: 83 Sector: Textiles & Apparels
Company name: RateGain Travel Technologies Percentage of export revenue to the operating revenue: 32 No. of active schemes held: 99 Sector: IT – Software
10/19
Company name: Granules India Percentage of export revenue to the operating revenue: 26 No. of active schemes held: 95 Sector: Pharmaceuticals & Biotechnology
Company name: Orchid Pharma Percentage of export revenue to the operating revenue: 26 No. of active schemes held: 81 Sector: Pharmaceuticals & Biotechnology
12/19
Company name: Swan Energy Percentage of export revenue to the operating revenue: 25 No. of active schemes held: 85 Sector: Diversified
Company name: Firstsource Solutions Percentage of export revenue to the operating revenue: 24 No. of active schemes held: 100 Sector: Commercial Services & Supplies
14/19
Company name: eClerx Services Percentage of export revenue to the operating revenue: 22 No. of active schemes held: 100 Sector: Commercial Services & Supplies
15/19
Company name: Azad Engineering Percentage of export revenue to the operating revenue: 17 No. of active schemes held: 80 Sector: Electrical Equipment
Company name: Indegene Percentage of export revenue to the operating revenue: 16 No. of active schemes held: 99 Sector: Healthcare Services
17/19
Company name: NIIT Learning Systems Percentage of export revenue to the operating revenue: 14 No. of active schemes held: 98 Sector: Other Consumer Services
18/19
Company name: Latent View Analytics Percentage of export revenue to the operating revenue: 14 No. of active schemes held: 96 Sector: IT - Software
19/19
Company name: Pearl Global Industries Percentage of export revenue to the operating revenue: 12 No. of active schemes held: 99 Sector: Textiles & Apparels
