Tata Consultancy Services (TCS), Tata Motors, Titan Company, Tata Steel and The Indian Hotels were top five mutual fund stock bets in May. Data compiled from PRIME Database showed mutual funds owned Rs 89,107 crore worth exposure in the five Tata group names. Among these five stocks, only one stock offers double digit upside potential, average share price target data publicly available with Trendlyne showed. Tata Consumer Products, Tata Communications, Tata Chemicals, Tata Power and Tata Elxsi were some other group stocks where domestic fund managers had significant exposure in value terms.
In the case of TCS, domestic fund managers managed 12,80,00,796 shares, or 3.50 per cent, stake in the largest IT firm worth Rs 42,105.86 crore in May. This stake accounted 1.72 per cent of the total equity assets that mutual fund industry managed as on May 31, as per data compiled by PRIME Database.
An average target price of Rs 3,463 on TCS, as suggested by Trendlyne, suggests 7 per cent upside potential for the stock.
Mutual funds owned 30,17,03,897 shares, or 9.08 per cent stake in Tata Motors at May end. The stake was valued at Rs 15,878.68 crore or 0.65 per cent of the total equity assets managed by mutual fund houses. A target of Rs 608 on Tata Motors shares suggest a 5 per cent potential upside ahead for the stock.
Titan Company, where Rekha Jhunjhunwala owned a considerable stake, was mutual funds’ third biggest bet in value terms. The institutional class owned Rs 14,406 crore worth 5,10,26,456 Titan shares at May end. This stake accounted for 5.75 per cent ownership in Titan and 0.59 per cent of the industry’s total equity assets. The average target price of Rs 2,994 suggests a potential 1 per cent upside for the Titan stock.
Tata Steel and Indian Hotels were funds’ fourth and fifth largest bets. Mutual funds owned Rs 11,651 crore worth Tata Steel shares as on May 31. They managed Rs 11,318 crore worth Indian Hotels shares, data showed. Tata Steel’s average target price of Rs 126 suggests a 11 per cent potential upside while that of Trent’s target at Rs 1,598 uggests 1 per cent potential upside.
Trent, Tata Consumer Prodcts, Tata Communications, Tata Chemicals, Tata Power and Tata Elxsi are some other stocks with high mutual fund exposure in value terms.