NRIs' net inflows saw a jump last year: These were their 5 favourite stocks
Sameer Bhardwaj March 5, 2018
Non-Resident Indians' (NRIs) net inflows jumped to USD 5,039 million between April 2017-December 2017 compared to net outflows of -15,065 USD millions in April 2016-December 2016. Looking at the constituents of BSE500 index, there are 32 stocks where non-promoters NRIs have consistently increased their stake in the last five quarters between December 2016 and December 2017. The average returns of these 32 stocks between 30 December 2016 and 1 March 2018 was 40.1 per cent. BSE500 delivered 32.4 per cent in the same period. Let us look at the five favourite stocks of NRIs that have delivered highest returns in the last 14 months.
Centrum Capital: A diversified financial services company with business segments across equity capital markets, M&A advisory, corporate finance and advisory, primary and secondary debt placement, project finance and corporate debt restructuring. NRIs increase their stake in the company from 0.12 per cent in December 2016 quarter to 2.39 per cent in December 2017 quarter. The company reported decline in top line growth in Q3FY18 by over 20 per cent. However, helped by decline in depreciation, interest and tax costs, it posted a healthy bottom line growth of 182.3 per cent. The stock outperformed the market by four times between 30 December 2016 and 1 March 2018. It delivered a point to point return of 135.9 per cent. BSE500 delivered 32.4 per cent in the same period.
Himachal Futuristic Communications: The company is a manufacturer of optical fibre cables, optical transport, power electronics and broadband equipment for telecommunications industry. It has production facilities in Himachal Pradesh, Goa and Tamil Nadu. NRIs' stake in the company went up from 0.44 per cent in December 2016 quarter to 0.54 per cent in December 2017 quarter. In Q3FY18, company reported top-line and bottom-line growth of 93.2 per cent and 116.3 per cent respectively. The stock delivered 137 per cent point to point returns between 30 December 2016 and 1 March 2018 and outperformed the market by over 4.2 times.
Aegis Logistics: An oil, gas, and chemical logistics company that operates a network of bulk liquid handling terminals, liquefied petroleum gas (LPG) terminals, filling plants, pipelines, and gas stations. NRIs have increased their stake in the company from 0.76 per cent in December 2016 to 1.31 per cent in December 2017 quarter. In Q3FY18, company's top line grew by 15.6 per cent supported by nearly 16 per cent growth in gas terminal division. The net profit margin jumped to 3.9 per cent in Q3FY18 from 3.3 per cent in Q3FY17. The stock delivered 94.7 per cent point to point returns between 30 December 2016 and 1 March 2018. It outperformed the market by 2.9 times.
KRBL: Integrated rice processing company with a comprehensive product chain. It is engaged in seed development, contact farming, procurement of paddy, storage, processing, packaging, branding and marketing of basmati rice. NRIs have increased their stake from 0.86 per cent in December 2016 quarter to 7.88 per cent in December 2017 quarter. In Q3FY18, the consolidated top line of the company fell by -1.8 per cent. Helped by substantial increase in other income and decline in interest costs, the company posted bottom line growth of 10.9 per cent. The stock outperformed the market by over 2.6 times between 30 December 2016 and 1 March 2018. It delivered a point to point returns of 85.1 per cent.