Parag Parikh Flexi Cap’s Power Play: Coal India Surges In, ITC Hotels Checked Out!

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India's biggest flexi cap mutual fund, Parag Parikh Flexi Cap Fund (PPFCF), saw significant portfolio alterations in April 2025, indicative of its active investment strategy and long-term value orientation. Having an AUM of ₹98,541 crore, the latest transactions by the fund provide insight into its shifting strategy as per altering market situations.

Key Highlights:

Coal India Stake Increased: The fund more than tripled its stake in Coal India by purchasing 72.49 lakh shares, increasing its holding to 14.83 crore shares in April from 14.10 crore in March. The action reflects the fund's faith in the prospects of the coal major, making Coal India one of the fund's biggest holdings at 5.8% of the portfolio.
ITC Hotels Fully Exited: PPFCF sold out its entire holding in ITC Hotels in April, a strategic exit. The fund increased its holding in the parent company, ITC Limited, by purchasing 40.76 lakh shares at the same time, indicating a preference for the diversified FMCG behemoth over its hotel subsidiary.
Broader Portfolio Rebalancing: Besides Coal India and ITC, shares of Dr. Reddy's Laboratories, EID Parry India, and Maruti Suzuki India were added to the fund. Its exposure in 16 core stocks-including HDFC Bank, Bajaj Holdings, ICICI Bank, and Kotak Mahindra Bank-did not change, which indicates a steady long-term view on these blue chips.
No New Stocks Added: The overall portfolio stocks declined from 27 in March to 26 in April, with no additions, reflecting a quality and selective investment strategy.
Fund Philosophy: Guided by the team headed by Rajeev Thakkar, the fund still focuses more on company fundamentals compared to macro trends, and the fund has a substantial cash, debt, and arbitrage instruments holding to invest in opportunities in the future.

Parag Parikh Flexi Cap Fund's April performance indicates a mix of faith in India's core industries and a rigorous, merit-driven stock picking approach.

Sources: Economic Times, Moneycontrol, PPFAS Factsheet