Nippon India Mutual Fund, through its various schemes, has raised its stake in small-cap stock priced below ₹1,000 – ISGEC Heavy Engineering – as per an exchange filing.
Nippon Life India Trustee Limited A/c through various schemes of Nippon India Mutual Fund bought 8,32,923 shares, representing a 1.13% stake, of ISGEC Heavy Engineering. With this, the mutual fund house now owned 43,85,591 shares of the company, amounting to a 5.96% stake.
At the end of the December 2024 quarter, Nippon India Mutual Fund held 35,53,688 shares of the small-cap company, representing a 4.83% stake. The stake purchased by the fund house was via open market transactions.
Apart from Nippon India, other big fund houses like UTI Mutual Fund, Franklin India Mutual Fund and Goldman Sachs also held a stake in the company, according to the latest shareholding pattern.
Share Price Trend
Shares of ISGEC Heavy Engineering were trading marginally lower in trade on Thursday. However, the stock has rallied 5% in the last one week, gaining 5% during this period as against a 1.5% fall in the BSE Sensex pack.
In the last one year, the stock has jumped 15% while it has surged 177.30% in the past five years, delivering multibagger returns to investors.
The small-cap stock has faced challenges so far in the current calendar year amid an ongoing bloodbath in the Indian stock market. The scrip has lost 32% on a year-to-date (YTD) basis but fared better than the 5% decline witnessed in the BSE benchmark Sensex.
ISGEC Q3 Show
ISGEC Heavy Engineering witnessed a sharp 65% drop in consolidated net profit to ₹23.10 crore in the third quarter of financial year 2024-25 (Q3 FY25) as against ₹66.58 crore in the same period last year.
Meanwhile, the revenue growth was flat as the company reported revenue from operations of ₹1496.66 crore in Q3, compared with ₹1492.52 crore in the same period last year.
The company provides engineering solutions and manufactures heavy machinery, boilers, and other equipment, and caters to marquee clients like Maruti Suzuki, Tata Motors, Ford, Reliance, Indian Oil, HPCL, Aditya Birla Group, Vedanta, BHEL, GAIL and Adani Wilmar among other.
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