Synopsis:
HDFC Defence Fund rebalanced its portfolio in August, entering Mazagon Dock, increasing holdings in key defence stocks, reducing exposure in select counters, and exiting Interglobe Aviation, while maintaining 24 stocks overall.
HDFC Defence Fund, the country’s only actively managed fund dedicated to the defence sector, reshuffled its portfolio in August with a mix of fresh additions, stake hikes, reductions, and a complete exit from one major holding. The fund, which continues to maintain 24 stocks in its portfolio, reinforced its commitment to the domestic defence space while trimming exposure in select counters.
Fresh Addition: Mazagon Dock Shipbuilders
The biggest move in August was the inclusion of Mazagon Dock Shipbuilders into the portfolio. The fund purchased around 4.50 lakh shares worth Rs. 117.13 crore, representing 1.79 percent of its total holding. This marks the entry of one of India’s leading shipbuilding and submarine manufacturing companies into the fund’s actively managed defence basket.
Stake Hike in Bharat Dynamics and Four Other Counters
The fund also increased its stake in Bharat Dynamics Limited, adding 3.38 lakh shares in August. The total holding rose to 20.48 lakh shares compared to 17.10 lakh in July, accounting for 4.5 percent of the portfolio.
Other stocks where exposure was raised included Bharat Forge, Centum Electronics, Data Patterns (India), and Solar Industries. The fund acquired around 5.98 lakh shares of Bharat Forge, taking its total to 23 lakh shares or 3.9 percent of the total holding. Similarly, 2.15 lakh shares of Centum Electronics were added, raising the holding to 4.75 lakh shares, amounting to 2 percent of the portfolio.
In Data Patterns (India), 22,449 shares were added, bringing the fund’s total to 5.15 lakh shares, equal to 1.9 percent of its holding. Solar Industries also saw incremental exposure, with 3,070 additional shares purchased in August. This raised the total stake to 6.51 lakh shares, representing 13.77 percent of the portfolio.
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Exposure Reduced in Four Stocks
While adding and expanding in certain companies, the fund simultaneously trimmed positions in four others. A total of 99,453 shares of Cyient DLM were sold from the portfolio. Additionally, 48,869 shares of JNK India, 42,200 shares of Avalon Technologies, and 13,220 shares of Techno Electric & Engineering Company were offloaded during the month.
Complete Exit from Interglobe Aviation
The most significant exit in August was Interglobe Aviation. The fund sold its entire holding of 2.65 lakh shares worth Rs. 156.62 crore, making a complete withdrawal from the airline stock.
No Change in 14 Stocks
Exposure in 14 other stocks remained unchanged in August compared to the July portfolio. These include BEML, Bharat Electronics, Cummins India, L&T, Premier Explosives, Diffusion Engineers, MTAR Technologies, Hindustan Aeronautics, Dee Development Engineers, Rishabh Instruments, Ideaforge Technology, Power Mech Projects, and The Anup Engineering.
Portfolio Size Remains Constant
Despite the reshuffling, the overall size of the HDFC Defence Fund portfolio remained steady. The fund continued to hold 24 stocks in August, the same number as in July, indicating a strategic rebalancing rather than portfolio expansion.
Written By Manan Gangwar
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