Tourism Finance Corporation of India: Strategic Investments in Alternative Investment Funds
Tourism Finance Corporation of India (TFCI) has made headlines with its strategic investments in two alternative investment funds. This move is seen as a significant step towards diversifying its portfolio and bolstering the real estate and hospitality sectors, which have been crucial for the Indian economy. TFCI's commitment as an anchor investor in these funds highlights its long-term vision and confidence in the market.
The first investment is in the Certus Real Estate Fund, a venture that aims to capitalize on the growing demand for commercial and residential properties. Certus Real Estate Fund has a robust pipeline of projects, including high-potential developments in key cities across India. By investing in this fund, TFCI is positioning itself to benefit from the upward trajectory of the real estate market, which has shown resilience despite economic challenges.
In addition to the real estate fund, TFCI has also committed to an investment in a hospitality fund. The hospitality sector has faced significant disruptions due to the global pandemic, but TFCI's investment signals a strong belief in its recovery and growth potential. The hospitality fund will focus on developing and revitalizing hotel properties, particularly in tourist hotspots and key business destinations. This investment is expected to not only enhance the quality of hospitality services but also create job opportunities and boost local economies.
Aditya Kumar Halwasiya, Chairman and Managing Director of TFCI, expressed his optimism about these investments. 'We are excited to partner with Certus and other leading players in the real estate and hospitality sectors,' Halwasiya said. 'These investments align with our strategic goals of fostering sustainable growth and contributing to the economic development of the country.'
TFCI's financial performance has been noteworthy over the past year. The company reported a consolidated net profit of Rs 24.00 crore for the quarter ended September 30, representing a substantial 140% increase from Rs 10.00 crore in the corresponding quarter of the previous financial year. This strong financial performance has been driven by a combination of prudent investment strategies and a focus on high-growth sectors.
The company's historical stock returns also reflect its robust performance. Over the past year, TFCI's stock has delivered a return of 66.99%, and over five years, it has seen a remarkable return of 465.40%. These figures underscore the company's ability to generate significant value for its shareholders.
Cupid, a prominent company in the healthcare sector, has also seen significant stock movements recently. Cupid shares witnessed a dramatic reversal on Friday, plunging 20% to hit the lower circuit limit at Rs 419.95 amid heavy profit booking. This decline ended an impressive 13-session winning streak that had delivered 34% gains and pushed the contraceptive manufacturer's stock to a 52-week high of Rs 526.95 on Thursday.
The price action occurred with exceptionally strong volumes as more than 2 crore shares changed hands on the NSE. Technical indicators had been signaling caution, with momentum indicators showing the stock in a strongly overbought zone prior to the correction. Both RSI and MFI readings well above the overbought threshold of 70 had indicated that a pullback was imminent. Despite the correction, Cupid shares continue trading above their 50-day and 200-day simple moving averages.
Cupid's recent financial results have supported the stock's rally. The company reported consolidated net profit of Rs 24.00 crore for the quarter ended September 30, representing a substantial 140% jump from Rs 10.00 crore in the corresponding quarter of the previous financial year. Total revenue for the quarter was Rs 90.00 crore, a 91% increase from Rs 47.30 crore in the same period last year.
The multibagger stock has delivered remarkable returns over the past year, surging 452% in the 1-year period. This exceptional performance has made Cupid one of the standout performers in the market, attracting significant investor attention. Cupid operates as a manufacturer and supplier of male and female condoms, water-based lubricant jelly, and IVD Kits. The company was incorporated as a public limited company in 1993, made its market debut on BSE in 1995, and subsequently listed on NSE in 2016.
Aditya Kumar Halwasiya, who serves as Chairman and Managing Director of Cupid, is a prominent promoter holding a 32.58% stake in the company. Halwasiya, an active Indian investor, also maintains an 18.80% stake in TFCI and recently acquired 38 lakh shares in The Karnataka Bank for Rs 71.00 crore.
In conclusion, TFCI's strategic investments in alternative investment funds are poised to drive growth and stability in the real estate and hospitality sectors. These moves, coupled with the company's strong financial performance and leadership, position TFCI as a key player in India's economic landscape.
