Top 5 Stocks Mutual Funds are Buying | Stocks to Invest in 2020 | Stock Market for Beginners | Groww


You invest in a lot of mutual funds And that mutual fund further invests in a lot of stocks And as an investor, you want to know a lot of times Which stocks did that mutual fund invest in Let us discuss in today’s video In the month of December, which mutual fund invested in which stock the most And we will talk about five such stocks Out of those, some stocks will be large cap Some mid cap and some small cap I, Jagdeep Singh, welcome you to the Groww channel Let us start today’s video In which we will talk about those five stocks In which mutual funds did the most buying in the last month The first company in which mutual funds did the most buying in the month of December The name of that company is L&T If I talk about how much buying took place Then mutual funds have made an investment of more than 1100 crores in the month of December in L&T If I tell you another interesting fact There are more than 450 such mutual funds That have invested in L&T directly L&T is a professionally managed company which means that the promoters have a 0% holding in their shareholding pattern And this company is completely managed by professionals If I talk a little about the financials Then L&T’s market cap is around 1,89,000 crores Its p/e ratio is around 20 If we talk about L&T’s business, then L&T is a completely diversified company Whose business is spread out in different sectors Like, IT services Financial services, infrastructure Manufacturing, power Apart from this as well it is spread out in a lot of sectors Now you must want to know how much revenue does L&T get and from which sector As you can see on my screen, I have taken this graph from L&T’s annual report Which tells us how much revenue does L&T get and from which sector If we talk about the major revenue, then L&T’s 72,000 crore revenue, which is 50% of the total revenue That comes out of the infrastructure sector After infrastructure the next sector from which they get good revenue is hydrocarbon From which they get 11% revenue IT services from where they get 10% revenue And financial servies from where they get 9% revenue Now you have understood how much revenue L&T gets and from where But now you must want to know what L&T’s result was in the recent quarter Now let us talk about the result that come out of L&T’s in the recent quarter How that was and did it meet the expectations or not? If we talk about L&T’s revenue that they reported in the quarterly result of December 2019, that is around 36,000 crores As I always tell you that you should compare the revenue to the same quarter of last year So in December 2018, L&T reported a revenue of 34,000 crores So there wasn’t much growth in their revenue as compared to the last financial year After this there is another very important parameter, Operating Profit Margin Which tells us how efficient the operations of a company is So if I talk about L&T’s operating profit margin in this quarter Then the reduction was of 22 basis point if we compare it to the quarter on quarter result But if we compare it year on year then it has improved by 16 points The second company in which mutual funds have invested a lot in the month of December is Maruti Suzuki Mutual funds have bought around 950 crores in Maruti Suzuki in the month of December If I tell you another interesting fact Then there are overall 300 mutual funds who have bought in Maruti Suzuki If I talk about Maruti Suzuki then its market capitalisation is around 2,11,000 crores Its p/e ratio is around 34 Apart from that if we talk about the domestic passenger segment In that Maruti Suzuki’s market share is around 50% And as you know that until now the auto sector was going down a lot And at one time, Maruti Suzuki’s stock price Which once used to trade at 10,000 fell down to trade at 5500 Then it is possible that mutual funds companies felt That this is the right time to buy, looking at its valuation Because of which they did heaving buying in this company, in the last month If I talk about Maruti Suzuki’s recent quarter result Their result wasn’t that good Because if we talk about its revenue in December, then their revenue is around 20,700 crores But their revenue in the last quarter of the last financial year was around 19,500 crores So there isn’t much increment here If we talk about its profit in this quarter then that is around 1587 crores Which has increased from the last quarter of the last financial when their profit was 1524 crores Only time will tell that the buying that mutual fund companies have done in Maruti Suzuki, how the result of that will come out to be Because we have seen that in the recent time There has been some improvement in the stocks of the auto sector But they haven’t been able to give that good returns that people were expecting The third company is a bank that in the recent month mutual funds bought around 750 crores And the name of this bank is RBL bank If I talk about RBL then its share price at one time used to trade at around 700 But some negative news came here because of which their share price fell from 700 And touched 250 But it has improved a little now and is trading at 350 The problem that came up in RBL was that the place that they had given debt, those companies went into a very bad state Because of which investors got afraid that they won’t get the money back If I give you an example RBI had given some money to CCD Apart from that Syntax industries and there were many other companies where they gave money and the chances of getting them back was very less If I talk about a financial parameter which is very important In the case of banks which we call non performing assets Which tells us that if any bank has given money somewhere Out of that how much chance is there for the money that is not going to come back So lower the NPA of any bank, it is better So if I talk about RBL’s recent quarterly result their gross NPA is It increased from 1.38% to become 3.33% Which means that their gross NPA has increased more than two times in the past year Apart from that if I talk about the recent quarter their net profit reduced from 220 crores and came down to almost 70 crores Which tells us that RBL’s financial data of this quarter was not good But mutual funds have bought in this company It is possible that mutual funds can see some value in that bank at that price In the banking sector there is another financial parameter which is very important which we call P/B ratio Price to book value The lower it is, the better Now you must want to know what RBL banks P/B ratio is So RBL bank’s P/B ratio is 1.92 So I always tell you when you have to compare any financial parameter, then you have to compare it to its competitors So if I talk about other banks in the banking sector Like HDFC bank Then their P/B ratio is more than 4 Kotak Mahindra bank whose P/B ratio is more than 6 So in comparison RBL’s P/B ratio is very less The fourth company in which mutual fund company’s have invested a lot is Voltas Voltas is a Tata promoted company and if I talk about the month of December Then mutual funds have invested about 138 crores If I tell you another interesting figure then there are 178 mutual funds who have invested in Voltas If we talk about Voltas’ financial data then its market cap is around 23,000 crores Which makes this a mid cap company If I talk about it P/E ratio Then its P/E ratio is around 44 If we talk a little about Voltas’ history then Voltas is a very old company which was started in 1952 And whose main business model is refrigeration And depends on air conditioning a lot As I tell you in every video that if you’re thinking of investing in any company then you should see their debt level Because it is very important to know how much debt a company has taken And a lot of times a company takes more debt than its capacity And is unable to fulfil that debt So if I talk in the case of Voltas about how much debt is on them They don’t have a lot of debt, it’s very negligible Which we can also call a virtually debt free company Which tells us a very positive point about Voltas Now let us talk about the last company And the last company is Quess corp ltd In which mutual funds invested around 470 crores in the month of December If I talk about the market cap of this company then that is around 8800 crores Which makes this a small cap company Which means that mutual funds have invested 470 crores in a small cap company If I tell you about the number of mutual funds that have invested in this company So, in total, there are 71 mutual funds that have invested in this company Apart from this there is another interesting fact about Quess corp If I talk about the number of shares The number of shares mutual funds had in October 2019 And if I compare that to December 2019 That becomes almost double So in percentage terms there has been investment So in the terms of number of shares mutual funds own a lot of shares Of this company and they have increased their investment a lot in this company Now let us try to understand Quess corps business And what kind of services it provides As you can see on my screen We have taken this screenshot from Quess corps annual report Which tells us that Quess corps business is mainly spread out in three sectors Like, workforce management Operating profit management and tax services If I talk about workforce management then it mainly helps a lot in recruitment for other companies Apart from that they help in real estate management And help in managing industrial and telecom assets Apart from that they also provide tax services Which provides a lot of diversification in different sectors Because of which this company has expanded itself well in the recent times As I always tell you that cashflow statement is very important And if you discuss about a small cap company Then you should see in the cashflow statement whether it is positive So if I talk about Quess corp and look at its cashflow statement So their operating cashflow is positive and it is around 202 crores So whenever you analyse a small cap company and do its valuation Always try to look at its cashflow from operations And you should see that it should always be positive So the five companies that we spoke about in this video, it is not necessary that you should directly go and buy it Because we made this video purely for educational purposes So that we can give you a brief idea Which companies are mutual fund companies investing in And behind their investment they can have their own criteria Which might not be fit for you as an individual investor Apart from that if I talk about mutual fund industries Then they say every month in their fact sheet, which companies are there And in which companies have they increased their stake Because of which they can reduce or increase their ownership in any company Based on which you should never make a direct investment decision So I will end this video with a question for you I would like to ask you which company, out of these, is your favourite And why is it your favourite company And if you have invested in that company, what is the rationale behind that? What is the reason for it Which you can comment and let us know And when people reply to your comment, we can make a very nice investment community So apart from that you can have a lot of investment queries which layman investors don’t know So we had started a series called #AskGroww So if you have any investment related question you can ask us those using that hashtag We will try to answer all your questions in the comments section And some questions we will discuss in videos We will make a separate video on that and conduct a detailed discussion You can find the link in the description You can find out the questions our viewers asked us And how we answered those queries So if you liked this video, press the like button Comment and answer our question and if you have any question apart from that You can comment and ask us And share this video with your friends If you haven’t yet subscribed to our channel Then please subscribe Because we put up 2-3 videos on financial knowledge every week on this channel Which can help a lot for you to become a good and intelligent investor Happy investing!

89 Replies to “Top 5 Stocks Mutual Funds are Buying | Stocks to Invest in 2020 | Stock Market for Beginners | Groww”

  1. Sir , make a video with comparison Orient Electric , KEI , Polycab which is better for long term hold maximum 20 year's ?
    Investment strategy lumsum or sip.
    If possible then it's very helpful.

  2. Is it possible you to make video on solar energy industry and future of this industry in India? And government role to promote in upcoming years

  3. LT because if India want to grow it has to concentrate on infrastructure and Modi government speaking about 102 lk crores infra investment LT being leader in infrastructure sector hope it will benefit

  4. Meri favourite company Bolta se Kyunki Voltas ka date 11 kam hai Jiska pani ka date level kam ho Apne Jo share Hota Hai Uska Apna share Jyada Deta Hai date level kam hone se company ko kam karne mein aasani hoti hai aur Voltas company ki TATA ka hai isliye Tata to honest Company hai isliye Bolta Smita later on Company hai

  5. #AskGroww
    I can't understand, the co-relataion between book value, cashflow, dividend and share prize… Please, explain!

  6. Important Question: Can you please tell us where you sourced this information from? That way maybe we can also look into stock specific mutual fund buying while doing analysis.
    Thanks in advance. Loved the video!

  7. If i have to buy the sovereign gold bonds by RBI, should i have a demat account and also, should i also pay for commodity charges if i own the gold bonds? #askgrowww

  8. Sir jab dividend announce hota hai jitne days mein account mein aa jata hai
    Tcs ka dividend effective date 23 jan hai toh kab tak dividend aa jayega ?? Plz reply

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  10. #askgroww
    1. After IPO why company care about stock price ?
    2. In different stock exchange ipo is different or what ?
    3. How to get good stock ideas because there are lots of companies available .

  11. Coincidentally i bought the first 3 stocks in Jan. Didn't buy voltas and quess yet though, waiting for the fair price.

  12. #AskGroww
    I have some SIPs(Regular Growth plan) that I took from an agent 2-3 years ago. Now how can I stop these Regular SIPs, please tell what can do?

  13. L&T – Because we can there expansion and customer Services is really good and I can see that this company will Groww in a good notes….

  14. Interesting!Sir, u should make video every month as trends gets change on the depend on the multi dimension factors.👍

  15. Hi Groww Team, I have used Groww App to invest in Mutual funds and generate a decent return. I loved the experience of using the Groww App. And Made video about Groww App. I hope you will like it… here is the link https://youtu.be/k8VwgsO9b9c

  16. Me mutual fund investment Karna chahta hu mujhe kya karna chahiye kaha pe investment karna chahiye
    Aur mujhe SIP karna h kase kare aur mera ₹5000/- salary h aur me single hu aur kya karna chahiye please batao

  17. Hi guys this is really I received my payment of $35,000 into my PayPal through warlmarthacher on !ñstàgràm by investing $1500

  18. #AskGroww
    If I want to invest in NiftyIndexFund and i made a request at 4pm then at which NAV i will get the fund?

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