Quant Mutual Fund keeps faith in this small-cap stock despite zero YTD return

Amid weak sentiments on Dalal Street, positional investors are busy scanning quality picks available at discounted price. A retail investor judge a stock as quality stock after going through its shareholding pattern and scan mutual funds and FIIs' shareholding in the stock. Apart from this, they also scan its financials. If a stock comes good on these parameters, then they zero on whether the stock is a quality stock or not.

For such bargain hunters, shares of Exxaro tiles can be a stock worth scanning. In this small-cap stock, Quant Mutual Fund and Mauritius-based AG Dynamics have investments and these investor institutions have remained steady in the stock despite being one of the stock that have delivered zero return in year-to-date (YTD) time. Looking at the financials of Exxaro Tiles, the company has given a steady growth in revenue and EPS over the last year which is a positive sign in terms of business prospects.

Quant Mutual Fund shareholding in Exxaro Tiles

According to shareholding pattern of Exxaro Tiles for Q2FY23, Quant Mutual Fund holds 21,73,410 company shares, which is 4.86 per cent of total paid up capital of the company. In Q1FY23, Quant Mutual Fund was holding same 21,73,410 company shares or 4.86 per cent stake in the company, which means Quant Mutual Fund remain steady in the company and kept its faith leaving short term triggers at bay.

AG Dynamics shareholding in Exxaro Tiles

In Q2FY2023 shareholding pattern of Exxaro Tiles, AG Dynamics is holding 6,01,622 company shares or 1.34 per cent stake in the company. In Q1FY23, the Mauritius-based FII was holding same 1.34 per cent stake in the company. This means like Quant Mutual Fund, this FII too remained steady in the company despite zsero return in YTD.

Speaking on Exxaro Tiles share price fundamentals that may help the stock in bouncing back, Ravi Singh, Vice President & Head of Research at Share India said, "Exxaro Tiles has given a steady growth in revenue and EPS over the last year, which is a positive sign in terms of business prospects. The company has saw a modest net income growth of 11 per cent over the past five years. With a high rate of reinvestment, a low ROE, the company has managed to see a considerable growth in its earnings. On technical setup, the momentum indicators and oscillators on daily chart are suggesting an immediate target of ₹135 levels in near term."

Exxaro Tiles news

Recently, Exxaro Tiles announced that Unit 1 of Padra plant in Gujarat restarted operations from Wednesday, 28 December 2022. The Unit 1 of Padra plant was shut for 3-4 weeks owing to planned regular maintenance schedule and associated equipment upgradation work.

Exxaro Tiles IPO was launched in August 2021 at a price band of ₹118 to ₹120 per equity share. The public issue opened positive at ₹126 apiece on BSE and NSE. Later on, it went on to make a high of ₹150 apiece on NSE but made a low of ₹92.65 apiece as well. The stock has rebounded from its lows and now it is quoting around ₹121 per share on NSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.