Company-fund manager meets hint at rising investor interest in midcaps

Mid-cap companies such as Kaynes Technologies, Astral, Sriram Finance, Star Health, Mold-Tek Packaging, Avalon Technologies, Bikaji Foods, and TCI Express are among the two dozen companies that have seen the highest number of management meetings with fund managers since August 1.

Kaynes Technologies is at the top of the list with 131 investors, including many domestic mutual funds and insurance companies that have met the management since August 1. The stock has rallied 43% in the last three months. About 110 institutional investors met the management of Astal since August 1, while Shriram Finance had a meeting with 106 investors. The two stocks have rallied 17% and 36% since August 1, respectively.

Investor meetings are considered a soft indicator of their interest in the stocks, and in many cases in the past, institutional holdings rose in those stocks post-meetings with a rally in stock prices.

“A good number of companies are meeting fund managers, and many of these companies are engaged in sectors that are either emerging or at an inflexion point, and it becomes important for fund managers to understand the sector and company landscape from the management to identify and understand growth levers and company dynamics,” said Vaibhav Shah, fund manager, Torus Oro PMS. “We see the recent trend as a positive sign where fund managers having the sole responsibility to manage funds from their trusted clients can understand companies operating in niche sectors and gain valuable insights to make informed decisions.”

Star Health management had meeting with 86 investors while Mold-Tek Packaging held 79 meetings so far this month.While Nifty was up 6% in the last three months, Nifty mid and small cap indices gained 17% and 20% during this period. The rally in mid- and small-caps combines earnings momentum and liquidity. Mutual funds focused on small-caps received a net inflow of close to ₹11,000 crore in the June quarter.

“The outperformance of mid- and small-cap stocks lead to increased investor interest as flows seem chasing growth,” said Kaushik Dani, fund manager – PMS, Abans Investment Managers.