So, Before analyzing the Holding of Mutual Fund, First, let’s see how is the quarterly result of Shivam Cement
In Q-1 Shivam Cement has PAT (Profit after Tax of Rs: 27.47 crore whereas in the same period, it has other income of 31.34 Crore
so we can see, Most portion of the PAT is due to other income, Let’s assume If a company hasn’t earned any other income and was
earning through core operating Activities only in such case there would have been a loss of 3.86 crores in Q-1 and 2.56 core in Q-3 and
in cumulative Rs 2.02 core loss till Q3.
The only instance of profit was in Q-2 which was Rs 4.40 core. SO summarising the point, Shivam Cement is not doing great from an
operation point of view as it is a loss of 2.02 crore (subject to tax impact).
The Profit is due to the Help of Other income (dividend Income from Hongshi). They have earned RS 34.01 from other income and
has a \net PAT of 31.99 crores which clearly shows its operating loss impact.
Whereas even sales are increasing 18-17% Quarter to Quarter but Raise in expenses of 21 % is hitting the profitability of the company
The reason we removed Other income form PAT.
-It is a Manufacturing Company
-Other Incomes are never sustainable
-It shows management Capabilities
-Shows the true figure of the company
Mutual Fund Holding:
Now let’s dive in Holding of Mutual Fund
The price of Shivam cement has recently fallen by at least 40 % from 880 to 420. This could be due to promoter selling noise or bad result anticipation.
In period of 3 month form Poush79 to Chaitra 79 , their has been raise of holding in Shivam cement by mutual fund by 84% ,
In 3 months Mega Mutual Fund – 1 (MMF-1 ) , Citizens Mutual Fund-1(CMF-1) both has raised their holding by above 300%
and all others Mutual holding changes are as below.
If we see Mutual Fund holding of Q3-79 Vs Q4-78
MMF-1 has increased it’s holding by 1500% , NIBLSF by 1316% the only fund to decrease is PSF (prabhu select fund)
they has educed holding by 32%. The details of industry is below .
If you want to see quarter-to-quarter holding here is the detail of it.
The mutual fund could be increasing its Pie in Shivam cement could be for averaging reasons, or with the hope that the company will bounce back.
After seeing the result we are not so excited about Shivam cement t even at the price of 440, the only thing that would make us excited will be a good fundamental result.
We are not denying the fact that there could be upward of 20-30% from the current maret price due to FOMO at a price range never seen earlier by mass.
