Surfing the internet! How domestic fund houses played with new-age stocks in April

Domestic fund houses have raised stakes in most of the new-age internet stocks during the month of April, aggressively shopping for Delhivery, Nykaa and Zomato.

Logistics firm Delhivery is among the prominent additions of both Franklin Templeton Mutual Fund and SBI Mutual Fund. While Franklin added Delhivery stock worth Rs 99 crore, SBI Mutual Fund bought shares worth Rs 449 crore. Domestic funds have raised their combined stake by 5.6 million shares in April.

Mutual Funds have continuously upped stake in Delhivery since the start of this year. During the March quarter, they have increased their holding in the company from 11.12% to 12.63%.

Shares of Delhivery have risen about 10% so far this year on a year-to-date basis. However, in the last one year period, the stock is down 32%.

FSN E-commerce, the parent of Nykaa, too was among the favourites of mutual funds in April. Domestic fund houses have raised their cumulative holding by a total of 54.1 million shares in the reporting month.

The online beauty retailer is among the top additions by Mirae Mutual Fund, which bought the stock worth Rs 476 crore during April

Meanwhile, Paytm saw some reductions, while some others included the stock to their portfolio. Axis Mutual Fund has picked up the stock as a fresh entrant, while Franklin Templeton reduced its weight in the company. JM Mutual Fund, which already had a stake, added more shares worth Rs 4 crore during April. Sundaram Mutual Fund has completely exited the stock.

Shares of Paytm have risen as much as 35% so far this year on the back of promising earnings.

After turning EBITDA positive in the third quarter, Paytm significantly brought down its losses in the March quarter. The company’s consolidated net loss shrunk to Rs 168 crore from Rs 761 crore a year ago, and Rs 392 crore a quarter ago.

Consolidated revenue from operations surged by nearly 52% YoY to Rs 2,335 crore. At the operating level, the company managed to sustain the profitability from Q3 and posted a profit of Rs 101 crore.

Post the results, Goldman Sach has maintained a 'Buy' rating on Paytm arguing that Q4 earnings should "largely" put to rest debates around Paytm’s business model traction and profitability.

Food delivery platform Zomato was also among the top stocks that mutual funds bought in April. The fund houses have increased the stake in the company by a total of 70 million shares from March.

Mirae Asset Mutual Fund, Franklin Mutual Fund and Motilal Oswal Mutual Fund have all raised stakes in the food delivery startup during the month of April.

Zomato shares have gained about 6.05% this year.

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