Delta Corp, Gujarat Gas, TTK Prestige, VIP Ind: 8 stocks where MFs, FPIs cut stakes in FY24

There were eight BSE500 constituents where mutual funds (MFs) and foreign portfolio investors (FPIs) cut stakes by at least 100 basis points each in FY24, data available with corporate database AceEquity. They included Rain Delta Corp, Industries Ltd, Gujarat Pipavav Port Ltd, Gujarat Gas Ltd, VIP Industries Ltd and TTK Prestige Ltd, among others. Only three of the eight stocks managed to deliver double-digit returns in  year that saw BSE500 index surging 40 per cent.

In the case of Delta Corp, the scrip tanked 37.69 per cent to Rs 110.65 level on Thursday against Rs 177.60 level at the end of FY23. Mutual funds cut stakes in the casino owner by 220 basis points over the first nine months of FY24 to 12.17 per cent from 14.37 per cent at the end of March quarter of 2023. FPIs, on the other hand, reduced their holding in the company by 379 basis points to 1.56 per cent from 5.35 per cent at FY23-end. Last year, Delta Corp received Rs 16,800 crore GST demand notice.  Delta Corp was earlier paying 28 per cent on its gross gaming revenue, which was its table revenue. The company was paying 28 per cent on an inclusive basis, which used to effectively cost 21.875 per cent to the company on its gross gaming revenue (GGR). Post October 1, 2023, Delta Corp started paying 28 per cent GST, not on the GGR which it was paying but on the sale of chips which it is selling.

The company, which logged a 59.34 per cent decline in its consolidated revenue in the December quarter though expects to return to its original revenue and profitability by the third quarter of FY25, as per a BT report.

In the case of VIP Industries, MFs cut stakes by 429 basis points to 10.06 per cent and FPIs by 153 basis points to 7.49 per cent. A host of analysts met the VIP management this week to understand its plans on product innovation.

"We upgrade VIP to a BUY (earlier HOLD) with a revised target of Rs 603 (earlier Rs 589) after assigning a multiple of 33 times (earlier 38 times) as we roll forward to FY26E. Our upgrade is driven by 30 per ecnt correction over last 6 months and the ensuing valuation comfort (VIP trades at 17 per cent discount to its LPA history of past 10 years)," Prabhudas Lilladher said post the meeting.  This stock was down 8.82 per cent for FY24.

In the case of TTK Prestige also, MFs (down 144 basis points) and FPIs (down 191 basis points) sold company shares, as the stock ended flattish for the year. For TTK, the demand environment remained soft.

"Given the muted demand environment and lower margin trajectory on back of intense competition, we continue to maintain our ADD with the price  target of Rs 883. We will be outwardly bullish on the stock once we see demand returning to the kitchen space," YES Securities said in a note last month.

In the case of Archean Chemical Industries Ltd, the company remains conservatively optimistic about Bromine & its derivatives' near-term future with increasing global volatility and slower-than-expected recovery in the Chinese economy and real estate market. MFs and FPIs cut stakes in this company by 110 basis points and 132 basis points, respectively. The stock was up 3.43 per cent for FY24.

"With its smaller size and large addressable market, ACIL remains confident of achieving 60-70 per cent utilisatiion from the new derivative plants

and continued strong uptake from the IS segment and recovery in the SOP segment. The stock currently trades at 8x Sep’26E," Axis Securities said while suggesting a 'Buy' and a target of Rs 693 on the stock.

Gujarat Gas saw MFs and FPIs cutting stakes in FY24 by 3.26 percentage points and 1.33 percentage points respectively. India’s LNG demand continues to strengthen with moderation in spot LNG prices driven by power, CGD and industrial segment.

"Sustained moderation in Asian spot LNG price is positive for all gas companies, particularly for CGD companies like Gujarat Gas and IGL (given their 20-30 per cent

dependency on spot LNG) as it will help to: partially offset the under-allocation of low-cost APM gas for CNG/domestic PNG segment; and improve competitiveness of gas vs alternative liquid fuels in industrial/commercial segment," JM Financial said on March 26.

Gujarat Pipavav Port, Rain Industries and EPL shares also saw MF and FPI selling in FY24. Rain Industries gained 2.3 per cent, EPL 11.76 per cent and Gujarat Pipavav Port 83 per cent during the same period.