By Chaitanya
BBA Finance Graduate with over 6 years of experience in the stock market and finance.
The Parag Parikh Flexi Cap Fund, a well-known open-ended dynamic equity scheme in India, made some interesting adjustments to its portfolio in July 2025. With its Assets Under Management (AUM) standing impressively at ₹1.13 lakh crore as of July 31, 2025, the fund, managed by a team including Mansi Kariya, Rajeev Thakkar, Raunak Onkar, Rukun Tarachandani, and Raj Mehta, continues to focus on long-term growth by investing across large, mid, and small-cap stocks. These recent moves highlight its strategic approach to market opportunities, as reported by financial news sources.
Key Portfolio Adjustments in July 2025
In a notable move, the Parag Parikh Flexi Cap Fund significantly increased its stake in two major Indian companies. It added approximately 47.5 lakh shares of ITC and a substantial 65.7 lakh shares of Power Grid Corporation of India. These significant additions indicate a strong conviction in the growth prospects of these entities. Additionally, the fund made smaller, strategic additions to its holdings in Kotak Bank and Cipla.
However, there was some conflicting information regarding Motilal Oswal Financial Services. While the fund fully exited its position in Motilal Oswal Financial Services in July 2025, according to earlier reports, it also reportedly added Motilal Oswal Financial Services as a new stock with about 5.91 lakh shares in the same month. This discrepancy has been noted in various updates from financial outlets. Furthermore, the fund reduced its stake in IPCA Laboratories by selling around 7.45 lakh shares. Meanwhile, exposure in nearly 15 other stocks remained unchanged during July. This includes well-known names like Bajaj Holdings & Investment, Balkrishna Industries, CDSL, Coal India, Indian Energy Exchange, Infosys, Mahindra & Mahindra, MCX, Swaraj Engines, and Zydus Wellness.
Spotlight on Power Grid Corporation of India
Given the significant increase in its stake, let’s take a closer look at Power Grid Corporation of India’s recent financial performance. The company, a public sector undertaking, plays a crucial role in India’s power transmission sector. Power Grid announced its Q1 FY26 earnings results on August 1, 2025, providing fresh insights into its operations. The fund’s increased investment could be linked to these performance indicators and future outlook.
Here’s a snapshot of Power Grid Corporation of India’s financials (all figures in Crores, unless specified), providing context to the fund’s investment decision:
| Financial Metric | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 |
|---|---|---|---|---|---|
| Revenue (Crores) | 11,309 | 12,092 | 11,786 | 12,641 | 11,657 |
| Expenses (Crores) | 1,466 | 1,681 | 1,700 | 2,081 | 2,094 |
| Operating Profit (Crores) | 9,540 | 9,597 | 9,533 | 10,194 | 9,102 |
| Operating Profit Margin % | 87% | 85% | 85% | 83% | 81% |
| Other Income (Crores) | 302 | 814 | 553 | 366 | 461 |
| EBITDA (Crores) | 9,843 | 10,411 | 10,085 | 10,560 | 9,563 |
| Interest (Crores) | 2,039 | 2,441 | 1,917 | 2,303 | 1,934 |
| Depreciation (Crores) | 3,200 | 3,292 | 3,216 | 3,196 | 3,131 |
| Profit Before Tax (Crores) | 4,603 | 4,678 | 4,952 | 5,062 | 4,499 |
| Tax % | 19% | 19% | 22% | 18% | 19% |
| Net Profit (Crores) | 3,724 | 3,793 | 3,862 | 4,143 | 3,631 |
| EPS | 4 | 4 | 4 | 4 | 4 |
As of early August 2025, the market data for Power Grid Corporation of India also presents an interesting picture.
| Stock Metric | Value |
|---|---|
| Market Cap | ₹2.68 Trillion |
| Revenue (ttm) | ₹459.82 Billion |
| Net Income (ttm) | ₹154.28 Billion |
| Shares Outstanding | 9.30 Billion |
| EPS (ttm) | 16.59 |
| PE Ratio | 17.37 |
| Forward PE | 15.95 |
| Dividend Yield | 3.16% (₹9.00 Dividend) |
| Ex-Dividend Date | August 19, 2025 |
| 52-Week Price Range | ₹247.30 – ₹366.25 |
Understanding Parag Parikh Flexi Cap Fund’s Investment Philosophy
The Parag Parikh Flexi Cap Fund, which was launched on May 24, 2013, operates with a clear and disciplined investment philosophy. The fund managers evaluate potential investments based on several key factors, ensuring a robust approach to capital allocation. These considerations include:
- Management quality and integrity
- Sector quality and industry outlook
- Return on capital and capital efficiency
- Presence of strong entry barriers for competitors
- Capital intensity of the business
- Prudent use of debt
- Overall growth prospects of the company
This fund aims to provide investors with diversified exposure by investing across various market capitalisations, benchmarking its performance against the NIFTY 500 (TRI). Investors looking for a diversified portfolio with a focus on value and growth might find this fund interesting.
Conclusion
The July 2025 portfolio changes by the Parag Parikh Flexi Cap Fund underscore its active management style and conviction in specific sectors and companies. The significant increase in holdings in ITC and Power Grid Corporation of India, alongside other minor adjustments, reflects a calculated approach to capitalising on market dynamics and long-term value creation. These movements provide valuable insights for investors tracking the strategies of India’s leading mutual funds.
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