Sensex and Nifty 50 opened slightly lower on Tuesday’s trading session, but soon hit record highs driven by gains in metal and energy stocks.
Since the US Fed’s 50 basis point rate cut, the Nifty has been hitting new highs, driven by optimism in global markets. Nifty reached a record high of 25,981.50, while Sensex surpassed the 85,000 mark for the first time, peaking at 85,058.55.
Listed below are two small-cap stocks in which mutual funds have bought stakes via bulk deals:
Alicon Castalloy Ltd
With a market capitalization of Rs. 2,284 crores, the shares of the auto ancillary company started Tuesday’s trading session on a higher note at Rs. 1,385.65 compared to its previous close of Rs. 1,338.80.
During the trading session, the shares hit a high of Rs. 1,450, gaining around 6 percent and are currently trading at Rs. 1410 apiece.
As per the BSE bulk deal data, India’s largest fund house SBI Mutual Fund bought over 3.72 lakh equity shares, i.e., equivalent to 2.29 percent of paid-up equity in the aluminium alloy castings manufacturing company at an average price of Rs 1,300 per share.
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However, one of the promoter entities Pamela Trading LLP, was one of the sellers in the transaction, selling 1.59 lakh shares and Rajeev Sikand, one of the largest public shareholders in the company with a 4.05 percent stake as of June 30, also sold 2 lakh shares in this transaction.
Looking at the company’s financial performance, the revenue increased by 5 percent from Rs. 419 crores during the March quarter to Rs. 440 crores in the June quarter. Contrastingly, the net profits decreased by around 10 percent from Rs. 21 crores to Rs. 19 crores during the same timeframe.
Alicon Castalloy Ltd (ACL), formerly Enkei Castalloy Limited, specializes in manufacturing automotive castings. The company primarily produces aluminium alloy die castings for the automotive industry in India.
Alicon Castalloy Limited serves various industries, including automotive, aerospace, and defence. In the defence sector, the company manufactures components for tanks, such as critical parts for artillery, missile systems, and other military applications.
Senco Gold Ltd
With a market capitalization of Rs. 10,734 crores, the shares of the prominent jewellery retailer started Tuesday’s trading session on a higher note at Rs. 1,346.95 compared to its previous close of Rs. 1,332.25.
During the trading session, the shares hit a high of Rs. 1,407, gaining around 5 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 1,379 apiece.
As per the BSE bulk deal data, one of the prominent mutual fund houses, ICICI Prudential Mutual Fund has bought over 4.9 lakh equity shares, i.e., equivalent to 0.63 percent of paid-up equity Senco Gold at an average price of Rs 1,280 per share.
Meanwhile, Oman India Joint Investment Fund II sold 5.89 lakh shares or a 0.76 percent stake in the company at an average price of Rs 1,280.16.
Looking at the company’s financial statements, the revenue increased by 23 percent from Rs. 1,137 crores during Q4FY24 to Rs. 1,404 crores in Q1FY25. In addition, the net profits surged by around 60 percent from rs. 32 crores to Rs. 51 crores during the same period.
Senco Gold is targeting a 15-20 percent increase in both revenue and profit for FY25 and the company plans to open 15-20 new stores during FY25, with approximately half being franchisee-owned.
Furthermore, the company anticipates that rising gold prices will exert pressure on profit margins. To counter this, Senco Gold is implementing customer-centric schemes aimed at mitigating price volatility impacts and driving store traffic.
Incorporated in 1994, Senco Gold Limited is a Pan-India jewellery retailer and is the largest organized jewellery retail player in the Eastern region of India based on the number of stores.
Also Read: Stock hits 5% upper circuit after Motilal Oswal Mutual Fund bought 2.12% stake
Written By Vaibhav Patil
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