3 of retail investors’ conviction buys surged up to 90%; 4 took a beating

Retail investors’ biggest stock bet of 2021 is

(IEX), where their holding stood at 17.9 per cent at the end of the June quarter (up 619 basis points QoQ) compared with March quarter’s 11.71 per cent (up 277 basis points QoQ) and December quarter’s 8.94 per cent. This stock is up 91 per cent in 2021 so far.

Future Retail, the second-biggest retail bet, has plunged 43 per cent year to date. Retail stake in the company has jumped 6.98 percentage points in the two quarters to 37.14 per cent at the end of the June quarter from 30.16 per cent at the end of the December quarter. Bliss GVS Pharma and

also saw retail holding rise by 638 basis points and 597 basis points, respectively. These stocks have fallen 48 per cent and 23 per cent, respectively, this year.

surged 50 per cent while Tata Power Company advanced 68 per cent this year, as retail bets in the two-quarter period jumped 572 basis points and 546 basis points, respectively. Engineers India is down 10 per cent after seeing a 505-basis point jump in retail holding.

For IEX, Edelweiss said the spot power market is on a roll and this is likely to continue as discoms trade more closely to real-time markets.

“With a near monopoly, IEX is set to benefit from the deepening spot power market. While IEX’s target on 25 per cent spot power market mix over the next 3 years is aggressive, doubling of the market to 12 per cent is possible,” it said.

HDFC Institutional Equities is positive on Tata Power’s strong transition into green energy, huge growth in the EPC business, higher regulated capex, asset monetisation and merger benefits.

“While we have maintained our PAT estimates, we have revised the target upward to Rs 156, by assigning higher multiples to the EPC and renewable businesses and loss reduction at Mundra,” it said recently. The stock traded at Rs 128.45 on Monday.

Brokerages do not track Future Retail and Bliss GVS Pharma. They do track SpiceJet, which had four ‘sell or strong sell’ ratings against 3 ‘buy’ ratings in the publicly available Reuters Ikon database.

In the case of SpiceJet, DGCA has allowed the operation of Boeing MAX aircraft to resume services in India. SpiceJet had taken delivery of 13 MAX aircraft before flying restrictions were laid on the aircraft. It has an existing order for 129 MAX aircraft.

“SpiceJet announced entry into a settlement with Avolon, a major lessor of MAX aircraft. However, the balance sheet remains a major concern, in our view,” the brokerage said.

Engineers India has 7 ‘buy’ calls against 2 ‘sell’ calls. In this case, June quarter revenues were better than expected and the stable margin was a key positive. But weak order inflow remains an overhang, given slow traction in ordering and limited near-term domestic pipeline, analysts said.

Just Dial’s ‘strong buy’ calls have jumped to four today compared with one just three months ago. That said, five of 13 brokerages tracking the stock still have ‘sell’ ratings on it.