Synopsis: Landmark Cars and Bajaj Consumer Care are in focus after Nippon India bought 15.9 lakh shares worth Rs 57.4 crore, while BNP Paribas acquired 10.02 lakh shares for Rs 28.31 crore, showcasing institutional interest in the firms.
Institutional activity often acts as a key indicator of market sentiment and long-term stock potential. Recent stake acquisitions by Nippon India Small Cap Fund and BNP Paribas in Landmark Cars and Bajaj Consumer Care highlight growing interest in niche growth and defensive sectors. These moves suggest that investors are positioning themselves strategically amid mixed global and domestic market conditions. Here are two stocks acquired by funds.
Landmark Cars Ltd
Landmark Cars Limited is the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen, and Renault. The company also caters to the commercial vehicle retail business of Ashok Leyland in India.
With the market cap of Rs 1,473 crore, the shares of Landmark Cars Ltd are trading at Rs 356 and are trading at a PE of 70.8, whereas its industry PE is at 43.2. The ROCE and ROE are 7.99% and 3%, respectively.
The investment of the Nippon India Small Cap Fund in 15.9 lakh shares of Landmark Cars worth Rs 57.4 crores at Rs 361 per share shows the high domestic institutional investors’ confidence in the growth opportunities that Landmark Cars has in the luxury automobile segment. Increasing their stake to over 7% by the investment of the Nippon India Small Cap Fund shows a high level of bullishness.
Furthermore, the stock traded with the exit of Goldman Sachs, whereas the partial sale of the stock position held by the company Polar Capital indicates a contrast in the sentiments of the overseas-based investment organisations, which could be the result of the profit-booking mechanism.
Bajaj Consumer Care Ltd
Bajaj Consumer Care is engaged in the business of cosmetics, toiletries and other personal care products and has a presence in both domestic and international markets. With the market cap of Rs 3,936 crore, the shares of Bajaj Consumer Care Ltd are trading at Rs 300 and are trading at a PE of 24.9, whereas its industry PE is at 49.8.
BNP Paribas’s investment in 10.02 lakh shares of Bajaj Consumer Care for an amount of Rs 28.31 crore at Rs 282.46 a share, which demonstrates the strengthened institutional interest in Bajaj Consumer Care shares. Such an investment indicates the expectations that the company can maintain a strong rate of return based on the constant demand forces governing the FMCG segment.
The fact that the investment has been made also indicates a play of caution by foreign investors, as the FMCG segment has been considered a defensive bet in a volatile market, as stocks in the FMCG segment are considered to be pillars in uncertain market conditions.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Stock in Focus After Nippon India and BNP Paribas Acquire Stake Worth ₹86 Cr appeared first on Trade Brains.