PPFAS Mutual Fund cut its cash holdings to 9.7% from about 24% a year ago, according to its latest filing.—The move frees capital for deployments in sectors that have slipped to more attractive multiples.
Raunak Onkar, Co‑Fund Manager and Head of Research, said the fund has been “deploying meaningfully” as valuations in cash‑generating businesses correct. The focus centers on companies with solid cash flows that have slipped out of the AI, data‑center and semiconductor hype.
DLFDLF, a real‑estate play with a large land bank, strong execution track record and a deleveraged balance sheet, has attracted the fund’s attention. Onkar noted that the stock’s growth expectations were largely priced in before the financial crisis, but current multiples now offer a buying window.
CMS Info Systems remains on the radar because of its role in the cash‑processing ecosystem. The company’s steady cash flows and reasonable valuation multiples make it a “good bet” for a fund that values fundamentals over high‑growth hype.
PPFAS maintains a 20% allocation to the banking sector, with HDFC, ICICI, Axis and Kotak in that order. Onkar stressed that the fund is comfortable at that level and will not add beyond it unless market dynamics shift.
Looking ahead, PPFAS signals it will keep adjusting private‑sector bank exposure and continue hunting for undervalued cash‑generating businesses as valuation corrections persist.