Updated Feb 17, 2021 | 06:32 IST
As stock valuations turn uncomfortable, fund managers are turning price-averse and turning to companies with strong earnings growth and healthy demand scenario in the coming quarters Mutual funds bet heavily on these stocks in January 2021. Do you own them? | Photo Credit: BCCL
As stock valuations run north of investors’ comfort zone, mutual funds are turning stocks showing the resilience of price sustainability, strong earnings growth and better margins. Domestic mutual funds were the net sellers in most days of January 2021 barring the last few days of the month in the anticipation of Union Budget 2021. The mutual fund industry continues to witness net outflows
Nomura is of the view that large order book and low leverage are positive catalysts adding that delivery of execution and strong cash flow track record place the company in a favourable position.
Why PNC Infratech is a good stock to accumulate
Healthy order inflows, with sustained margins, augur well for the company
By increasing the capital expenditure outlay for FY22 and opening up various other avenues for funding, the Centre, through its Budget announcements, reiterated its focus on the infrastructure space. The capex for the road sector in particular has been increased by 18 per cent over the budgeted estimate of FY21 to ₹1.7 lakh crore in FY22. Infrastructure stocks are, therefore, witnessing increased investor traction on expectations of a sustained momentum in order inflows. In this backdrop, companies with low existing levels of leverage in their balance sheet are expected to fare better.
Read more about PNC Infratech achieves financial closure for NHAI project on Business Standard. PNC Infratech announced that its subsidiary, PNC Unnao Highways has received communication from National Highways Authority of India confirming the achievement of financial closure for one of highway projects in Uttar Pradesh.