Lancer Container Lines, Varun Beverages, Great Eastern Shipping and Ujjivan Financial Services are four FPI favourites, which delivered over 100 per cent returns in 2022 so far. FPIs owned 20-30 per cent stake in the four entities as of September end.
Others such as IIFL Finance, Lemon Tree Hotels, Tube Investments of India and The Federal Bank were a few other FPI favourites, which delivered up to 80 per cent returns in a year that saw FPIs dumping Rs 1.20 lakh crore worth of domestic stocks.
Lancer Container Lines, where FPIs ownership stood at 20.46 per cent stake as of September quarter, rallied 151 per cent to 225 a piece compared with Rs 89.43 apiece, as of December 31, 2021. FPI holding in this company has also increased during the year to 20.46 per cent as of September 30 from 4.31 per cent as of December 31, 2021.
Varun Beverages jumped 139 per cent to Rs 1,413.40 level from Rs 591.03 level. FPI ownership in this PepsiCo bottler has risen to 25.01 per cent as of September 30 from 21.23 per cent at the end of 2021. ICICI Securities has a target of Rs 1,350 on the stock, with a hold rating. Kotak Institutional Equities finds this stock worth Rs 1,200 a piece.
Shares of Great Eastern Shipping rose to Rs 709.40 from Rs 297.90, up 138 per cent. FPI holding in this shipping company rose to 23.90 per cent from 20.64 per cent. B&K Securities has increased its FY24-25 EPS estimate for GE Shipping by 10-17 per cent and raise its target to Rs 950 from Rs 750 earlier.
The increase in earnings and valuation is driven by conviction that offshore business is now firmly entrenched in a 3-5 year upcycle. B&K Securities said its offshore assumptions, both day-rates and margins still remain below peak metrics reported by GESCO and the industry in the previous upcycle. Besides, it feels the tanker segment will remain strong for the next two years.
Ujjivan Financial Services, where FPIs hiked stake to 30.71 per cent from 26.65 per cent, also jumped 121 per cent year-to-date.
IIFL Finance, Lemon Tree Hotels, Tube Investments of India and The Federal Bank are four stocks, which gained 65-80 per cent in 2022 so far. FPI holding in these stocks rose up to 445 basis points in the three quarters of the ongoing calendar.
Hem Securities this week initiated coverage of IIFL Finance, valuing it stock at 2.2 times FY24 estimated book value to arrive at the target of Rs 604. “Branch expansion benefits shall now start to accrue and the company’s medium term Opex to assets ratios will tread lower in the medium term. The company shall also benefit owing to diversification,” it said.
Sharekhan believe consistent steady performance could drive re-rating on Federal Bank, as probability of improvement in return ratios is less likely going forward. Potential value unlocking in NBFC subsidiary Fed Fina via an IPO could be an additional catalyst for the stock, it said.
Lemon Tree has an average brokerage target of Rs 108.32, which suggests a 27 per cent potential upside ahead. The average target on Tube Investments, as per publicly available data with Trendlyne, suggests a potential 31 per cent downside.
Three other FPI favourites namely Elgi Equipments, Triveni Turbine and Mahindra & Mahindra are three stocks, which gained 54-65 per cent this calendar. FPI owned 25-39 per cent in these companies.