Their holdings in the IT firm stayed where they were in the September quarter. Can this stock deliver?
The stock is Birlasoft.
Shareholding pattern of the company, announced on Thursday, suggests Ashish Dhawan held 3.61 per cent, or 1,00,00,000 shares in the company, as on December 31, 2020, the same as September 30, 2020.
Ashish Kacholia owned 2.35 per cent, or 64,99,879 shares, in the company as on December 31. He also did not tinker with his holding during the quarter. Mukul Mahavir Agrawal’s 1.08 per cent, or 30,00,000 shares, in the company also stayed unchanged. The scrip jumped 35 per cent in the last three months and 456 per cent over its 52-week low of Rs 47.60 hit in March 2020.
Birlasoft is Agrawal’s biggest stock bet. At Rs 78.90 crore, it accounted for nearly a tenth of his total portfolio of Rs 891 crore, as per publicly available data with Trendlyne. Agrawal was seen entering the stock in September quarter only.
Birlasoft is also Dhawan’s largest bet at Rs 263 crore. He was seen entering the stock in December 2019. He has held 3.61 per cent stake in the firm since March quarter.
Interestingly, Birlasoft is also Kacholia’s top bet, valued at Rs 170.70. Kacholia is holding the stock at least since September 2017.
The smallcap stock has four ‘buy’ and one ‘outperform’ call as per publicly available data with Reuters Eikon database.
Elara Capital, which has a buy rating on the stock, is expecting to report a 8.2 per cent YoY rise in revenues (5.2 per cent QoQ) at Rs 901.7 crore compared with Rs 833 crore in the year ago quarter.
The momentum led by recent large deal wins and IMS partly offset by softness in the ERP portfolio, it said, while expecting medical segment to lead, aided by traction in other verticals.
Ebit margin for the company is seen expanding 189 basis points YoY (87 basis points QoQ) to 12.4 per cent from 11.5 per cent in the September quarter and 10.5 per cent in December quarter of last year.
Birlasoft’s profit is seen growing 18.5 per cent YoY (24.8 per cent QoQ) to Rs 86.10 crore from Rs 72.10 crore YoY.