Minting Money! 9 HNI stock bets pay off with over 45% returns in just over 2 months

At the time when Nifty has risen 8.4% so far this fiscal on the back of strong foreign fund inflows, 125 stock bets of India’s richie rich investors, out of 182 wherein they raised stakes during the March quarter, beat the benchmark. Nine have managed to rally over 45% during this period.

HNI investors are those whose holding in a particular stock exceeds Rs 2 lakh.

Rail Vikas Nigam Limited (RVNL) shares topped the charts, with 80.32% gains since the end of the March quarter. HNIs raised their holding by 12 bps to 2.69% in the recently-concluded quarter.

The stock has delivered mutlibagger returns of over 300% from a 52-week low of Rs 29 hit on June 21 last year. On a year-to-date basis (YTD), the stock is up 81%. The stock has little analyst coverage, according to Trendlyne data with only one ‘Strong Buy’ rating and a target price of Rs 130, which suggests a 6% upside from current levels.

The company’s March quarter consolidated net profit came in at Rs 359.3 crore, down 5%, compared to Rs 378 crore in the corresponding period last year. Its revenue from operations in the January-March quarter came in at Rs 5,719.8 crore, registering a decline of 11%, compared to Rs 6,437.5 crore in the year-ago period.

RVNL is followed by Cholamandalam Financial Holdings which has gained 64.08% so far in this financial year. Analysts also barely track this stock but have managed to give high double-digits of 61% and 43% on a YTD and one-year basis, respectively. HNIs raised their stake by 25 bps quarter-on-quarter to 1.61% from 1.36%.

HEG, where HNI stake went over a percent to 1.04% in the March quarter, rewarded investors with 54.16% returns since March 31. According to Trendylne data, the stock, however, could decline 15% from current levels.

Intellect Design Arena, Prestige Estates Projects, Astral, Welspun India and Godrej Properties are among other companies that have risen between 46-49% so far in FY24. HNI holding in these stocks increased by 1-35 bps.

New-age tech stock Zomato, with its 45.35% gain, is another stock that awarded the richie rich investors handsomely in the fiscal so far. From its 52-week low of Rs 40.55, the stock has surged 83% as of Friday’s close. HNIs hold a 1.43% stake in Zomato, up 14 bps QoQ.

“The food delivery business is still at a nascent stage in India with a long runway for growth. With a dominant market share and strong growth in the food delivery business and Hyperpure, we expect Zomato to report a strong 36% revenue CAGR over FY23-25. We further expect Zomato to breakeven in 4QFY24, in-line with the management guidance,” Motilal Oswal in a report said last month. It has a buy call on the stock with a target price of Rs 80.

The average broker target of Rs 79, suggests a 6% upside from current levels.

(Data Inputs: Ritesh Presswala)

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