The stress of the Indian Automobiles Industry has begun to reflect in the shareholding pattern of these companies. Mutual Fund Industry, which is considered to be extremely cautious with its investment bets, has off late reduced its investment in most auto majors of the country today.
As at the end of Mar '12, the MF holding in Tata Motors was a mere 1.7% against 1.9% in Sep '11. For Maruti Suzuki, the MF shareholding was at 2.9% in Mar '12, its lowest in past one year since Mar '11.
The shrink in the MF shareholding was also reflected in the shareholding pattern of Ashok Leyland and M&M. While for M&M, MF shareholding at 2.9% was lowest since Mar '09, in case of Ashok Leyland; the same has shrunk to 2.6%, lowest since Mar '08.
The only company in this sector to have witnessed a renewed buying interest by the fund industry is Eicher Motors. The MF holding in this company is steadily on a rise Mar '10 from 9.5% then to 14.6% today.
Incidentally, Eicher Motors, which commands a market capitalization of less than Rs 6000 crore, is amongst the handful of companies in the auto industry to have reported a consistent growth in the operating margins for the past four years. The operating margins of the company have grown from 0.6% in FY '9 to more than 10% in FY '12.
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'I made my money by selling too soon.'
Website: http://indianmutualfund.co.cc/
Blog:http://indianmutualfund.wordpress.com/
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