In a significant market move, SBI Mutual Fund has strategically expanded its investment portfolio by acquiring substantial stakes in two prominent companies through open-market transactions. The fund house executed bulk deals on Tuesday, November 25, demonstrating its continued confidence in the Indian manufacturing and automotive sectors.
Major Portfolio Expansion
According to data from Trendlyne, SBI Mutual Fund now publicly holds 46 stocks with a staggering net worth exceeding ₹301,081 crore. The financial data reveals an impressive growth trajectory, with the company's portfolio net worth increasing by 8.5% to ₹302,164.94 crore during the September quarter of FY26.
Elgi Equipments Investment Details
SBI Mutual Fund strengthened its position in Elgi Equipments by acquiring an additional 55.6 lakh shares, representing 1.75% of the company's paid-up equity. This strategic acquisition, valued at ₹268.64 crore, was executed at ₹483 per share.
This new purchase complements the fund house's existing 4.28% stake in the air compressor manufacturer as of September 2025. Despite the significant investment, Elgi Equipments' stock performance showed some pressure, closing at ₹480 on Tuesday, reflecting a 3.21% decline. The stock has demonstrated some weakness recently, falling 5% over the last five trading sessions and 2% during the past month.
However, the company's fundamental performance tells a different story. Elgi Equipments reported robust financial results for the September 2025 quarter, achieving a 27.7% year-on-year increase in net profit to ₹118 crore, compared to ₹92.4 crore in the same period last year. The company also recorded an 11.4% growth in net sales, reaching ₹968 crore against ₹869 crore in July-September 2024.
ASK Automotive Stake Acquisition
In a parallel transaction, SBI Mutual Fund secured a 3.98% stake in ASK Automotive, acquiring 78.61 lakh shares worth ₹371.86 crore. The shares were purchased at ₹473 per share from promoter Kuldip Singh Rathee, who divested 78.85 lakh shares (4% stake) for ₹373 crore.
ASK Automotive's stock showed minimal movement on Tuesday, closing marginally lower by 0.29% at ₹475.25. The stock has experienced a 4% decline over the past month but has demonstrated resilience with a 9% gain over six months.
The company's financial performance remains strong, reporting consolidated operating revenue of ₹1,059 crore for the quarter ending September 30, 2025. This represents an 8.5% year-on-year increase from ₹976 crore in Q2 FY25. Furthermore, the company achieved a profit after tax of ₹80 crore in Q2 FY26, marking an 18.6% growth compared to ₹67 crore in the corresponding period last year.
Market Implications and Outlook
These strategic acquisitions by SBI Mutual Fund highlight the institution's continued focus on identifying value opportunities in the Indian market. The simultaneous investments in both Elgi Equipments and ASK Automotive demonstrate confidence in the manufacturing and automotive components sectors, despite recent stock price fluctuations.
The bulk deals executed by one of India's largest mutual funds often serve as important market indicators for other investors. The fact that SBI MF chose to increase its exposure to these companies suggests underlying strength and growth potential that may not be immediately reflected in short-term stock performance.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
