HDFC MF leads top stock addition list

By Rajesh N Naidu

Among the top five large fund houses — HDFC, ICICI Prudential, Birla Sun Life, Franklin Templeton and UTI — HDFC has been more active in adding shares of new companies to its portfolio in June this year.

HDFC Mutual Fund has bought most of the top 10 stocks which saw increased buying in June this year, including shares of Prism Cement, Praj Industries, Indian Hotels, IDFC and PowerGrid Corporation.

There are two attractive aspects to these companies, which can significantly enhance their revenues in coming quarters. First, these companies are trading at a discount to their historical valuations. And second, there are attractive themes in these companies which provide higher revenue visibility for them.

For instance, IDFC, which at present is a non-banking financial company, would soon be a full-fl edged bank. Once economic growth picks up, its earnings would also improve considerably.

Another company, Prism Cement, is not a pure cement player, and its shares have been accumulated by many fund houses as it comes under the consumption theme. Prism Cement is an integrated building materials player, and apart from cement, it manufactures ready-mixed concrete, tiles and bath fittings.