ICICI Bank, HDFC Bank, RIL, Infosys, HDFC shares: MFs owned Rs 8L crore worth 10 stocks in May; worth a look?

Mutual funds owned Rs 8,02,327 crore worth shares in 10 largecap companies in June, with ICICI Bank being their top bet in value terms, followed by HDFC Ban, Reliance Industries (RIL), Infosys and HDFC Bank, data compiled by PRIME Database suggested. The average share price targets on these 10 top MF-owned stocks suggest upside potential of up to 23 per cent ahead. ITC and Larsen & Toubro (L&T) among the 10 stocks have least upside potential, as per average target prices, Trendlyne data suggests.

In the case of ICICI Bank, domestic fund managers managed 1,65,83,26,093 shares, or 23.75 per cent, stake in the private lender worth Rs 1,45,477 crore in May. This stake accounted 6.46 per cent of the total equity assets that mutual fund industry managed as on May 31, as per data compiled by PRIME Database.

An average target price of Rs 1,128 on ICICI Bank, as suggested by Trendlyne, suggests 22 per cent upside potential for the stock.

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Mutual funds owned 84,09,42,433 shares, or 15.07 per cent stake in HDFC Bank at May end. The stake was valued at Rs 1,35,354 crore or 6.01 per cent of the total equity assets managed by mutual fund houses. A total of Rs 2,000 on HDFC Bank shares suggest a 23 per cent potential upside ahead for the stock.

Reliance Industries was mutual funds' third biggest bet in value terms. The institutional class owned Rs 97,254 crore worth 41,72,11,289 RIL shares at May end. This stake accounted for 6.17 per cent ownership in RIL and 4.32 per cent of the industry's total equity assets. The average target price of Rs 2,873 suggests a potential 12 per cent upside for the stock.

Infosys and HDFC were funds' fourth and fifth largest bets. Mutual funds owned Rs 95,047 crore worth Infosys shares as on May 31. They managed Rs 62,040 crore worth HDFC shares, data showed. Infosys' average target price of Rs 1,496 suggests a 15 per cent upside while that of HDFC's at Rs 3,148 suggests 17 per cent upside.

Axis Bank, State Bank of India, Larsen & Toubro, Bharti Airtel and ITC are five other stocks where MF held Rs 45,000-61,000 crore worth shares at May end. Mutual funds' ownership in these five companies stood anywhere between 9.50 per cent and 23.06 per cent. These stocks accounted for 2-2.75 per cent of MFs' equity exposure. Axis Bank's target suggests 15 per cent upside potential, SBI's 26 per cent, Larsen & Toubro's 6 per cent, Bharti Airtel 10 per cent and ITC 4 per cent.

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