Manufacturing: The new hot stock picking ground for MFs. Here are their top midcap picks
Companies that belong to the ‘manufacturing’ sector are likely to benefit from the Indian government’s ‘Make in India’ drive. Small wonder then that of the six schemes that invest predominantly in manufacturing sectors, four were launched in the last one year or so ago
Manufacturing sectors get the attention of the fund managers lately. Of the six schemes that invest predominantly in manufacturing sectors, four were launched in the last one year or so ago. Quant Manufacturing Fund is the latest entrant in the category. Experts believe that these funds will benefit from the Indian government’s ‘Make in India’ drive and a wide choice of manufacturing industries across market caps offers many cyclical investment opportunities. According to Emkay Investment Managers Ltd, these sector is poised to grow at a brisk pace supported by favourable government policies, key beneficiaries of China+1, and the improving matrix within the players. Sandeep Tandon, CIO & Founder, Quant Mutual Fund says, “India’s ambition of realizing the $26 trillion economy presents multi-decade investment opportunities and aims to benefit from the exciting milestones during India’s transformation into a global design and manufacturing export hub”. These funds mainly invest in the sectors including automobiles, auto ancillary, chemicals & pharmaceuticals, capital goods, engineering, electrical & electronics, food & beverages, textiles, consumer durables, building materials, defense & aerospace, and industrials. Here are the most popular midcap stocks among the four manufacturing funds (avoided duplication among passive funds). Midcap stocks that are held by maximum number of manufacturing funds with significant exposures are considered. Source: ACEMF. Data as of June 2023 and also July 2023.
2/14
AIA Engineering No. of manufacturing funds held the stock: 4 Sample of manufacturing funds held the stock: Bank of India Manufacturing & Infrastructure Fund and Kotak Manufacture in India Fund
3/14
Ashok Leyland No. of manufacturing funds held the stock: 4 Sample of manufacturing funds held the stock: Bank of India Manufacturing & Infrastructure Fund and Kotak Manufacture in India Fund
Bharat Forge No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Kotak Manufacture in India Fund and Navi Nifty India Manufacturing Index Fund
United Breweries No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Bank of India Manufacturing & Infrastructure Fund and Kotak Manufacture in India Fund
Kajaria Ceramics No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Bank of India Manufacturing & Infrastructure Fund and Kotak Manufacture in India Fund
Schaeffler India No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Kotak Manufacture in India Fund and ICICI Pru Manufacturing
8/14
Cummins India No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Kotak Manufacture in India Fund and Navi Nifty India Manufacturing Index Fund
Solar Industries India No. of manufacturing funds held the stock: 3 Sample of manufacturing funds held the stock: Kotak Manufacture in India Fund and Bank of India Manufacturing & Infrastructure Fund
Hindustan Petroleum Corporation No. of manufacturing funds held the stock: 2 Manufacturing funds that held the stock: ICICI Pru Manufacturing and Bank of India Manufacturing & Infrastructure Fund
11/14
JK Cement No. of manufacturing funds held the stock: 2 Manufacturing funds that held the stock: Bank of India Manufacturing & Infrastructure Fund and ICICI Pru Manufacturing
Lupin No. of manufacturing funds held the stock: 2 Manufacturing funds that held the stock: ICICI Pru Manufacturing and Navi Nifty India Manufacturing Index Fund
13/14
Apollo Tyres No. of manufacturing funds held the stock: 2 Manufacturing funds that held the stock: Bank of India Manufacturing & Infrastructure Fund and Kotak Manufacture in India Fund
14/14
Supreme Industries No. of manufacturing funds held the stock: 2 Manufacturing funds that held the stock: Kotak Manufacture in India Fund and Navi Nifty India Manufacturing Index Fund
