5 Stocks with Increasing FIIs and DIIs Holding

August 23, 2024 chauhanp0110@gmail.com

The Indian stock market is a dynamic environment where the movements of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) often indicate the future prospects of specific stocks. FIIs and DIIs are known to conduct thorough research before making significant investments, making their increasing stakes in certain companies a compelling signal for retail investors. In this post, we will explore five companies that have seen substantial increases in both FII and DII holdings over the recent quarter, highlighting their business operations, market positions, and future outlooks.

1. PSP Projects Ltd

Current Market Cap: ₹2,701 Cr.
Current Share Price: ₹681

Founded in 2008, PSP Projects Ltd is a construction company that has diversified its operations across various segments, including industrial, institutional, government, and residential projects. The company is an integrated EPC (Engineering, Procurement, and Construction) player, offering services ranging from design and construction to mechanical, electrical, and plumbing (MEP) services. PSP Projects Ltd has successfully expanded its geographical footprint across six Indian states: Gujarat, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra, and New Delhi.

The company has an order book of ₹5,890 crores and it also has 56 ongoing projects as on 30 June 2024.

In the last 7 years, the company’s performance has been outstanding, where it has grown its revenue by 30% CAGR and profit by 17% CAGR.

PSP Projects has seen an increase in FII holdings from 2.31% in March 2024 to 7.02% in June 2024, while DII holdings have surged from 4.53% to 10.45% during the same period.

2. RR Kabel Ltd

Current Market Cap: ₹18,515 Cr.
Current Share Price: ₹1,638

RR Kabel Ltd, founded in 1999, is the fourth-largest player in India’s Wires and Cables (W&C) industry. The company is a prominent electrical conglomerate with a global presence in over 85 countries. With 37 international certifications, RR Kabel has established itself as a leader in the Indian consumer industry. The company’s integrated in-house manufacturing facilities include two for wires and cables and three for Fast Moving Electric Goods (FMEG).

FIIs have increased their stake in RR Kabel from 4.16% in March 2024 to 6.54% in June 2024, while DIIs have also boosted their holdings from 9.37% to 13.53% over the same period. This growing interest from institutional investors highlights RR Kabel’s strong market position and its potential to continue benefiting from the increasing demand for electrical products in India and abroad.

3. Gland Pharma Ltd

Current Market Cap: ₹30,968 Cr.
Current Share Price: ₹1,880

Established in Hyderabad in 1978, Gland Pharma Ltd has evolved from a contract manufacturer of small-volume liquid parenteral products to one of the largest injectable-focused companies globally. The company operates in over 60 countries, including key markets such as the United States, Europe, Canada, and Australia. Gland Pharma follows a business-to-business (B2B) model, with a strong track record in developing, manufacturing, and marketing complex injectables. The company is promoted by Shanghai Fosun Pharma, a major global pharmaceutical player.

Gland Pharma has witnessed a significant increase in FII holdings from 3.59% in March 2024 to 6.88% in June 2024, while DII holdings have risen from 25.23% to 32.83% during the same period. This uptick in institutional interest reflects the company’s strong growth prospects, particularly in the high-margin injectable pharmaceutical segment.

4. Transformers & Rectifiers India Ltd

Current Market Cap: ₹11,195 Cr.
Current Share Price: ₹746

Transformers and Rectifiers (India) Ltd is a leading manufacturer of power, furnace, and rectifier transformers. The company’s product portfolio is diverse, with contributions from power transformers (58% of revenue in FY24), shunt reactors (4%), distribution transformers (12%), furnace transformers (6%), and rectifier transformers (5%). The company’s wide range of products caters to various sectors, making it a market leader in India.

Also, as of June 2024, the company has an order book of ₹2926 crores and has a new order inflow of ₹698 crores.

FIIs have increased their holdings in Transformers & Rectifiers from 4.45% in March 2024 to 8.00% in June 2024, while DIIs have raised their stake from 1.89% to 6.33%. The rising institutional interest is a testament to the company’s strong fundamentals and its potential to benefit from India’s growing energy and infrastructure demands.

5. Jupiter Wagons Ltd

Current Market Cap: ₹23,615 Cr.
Current Share Price: ₹556

Jupiter Wagons Ltd, formerly known as Commercial Engineers & Body Builders Company Ltd (CEBBCO), specializes in manufacturing metal fabrication products, including load bodies for commercial vehicles and rail freight wagons. The company’s product portfolio is diverse, encompassing shipping containers, skip-loaders, garbage-bin collectors, troop carrier vehicle bodies, prison van bodies, and water bowser bodies. These products cater to a wide range of industries, including mining, road construction, goods transportation, solid waste management, municipal applications, and defense.

Also, as of June 2024, the company has an order book of ₹7,02,834 lakh.

FIIs have increased their stake in Jupiter Wagons from 4.14% in March 2024 to 5.34% in June 2024, while DIIs have also grown their holdings from 0.92% to 2.30% during the same period. This increase in institutional holdings indicates a growing confidence in Jupiter Wagons’ ability to capitalize on India’s expanding infrastructure and transportation sectors.

Outlook

The increasing stakes of FIIs and DIIs in these companies underscore the positive sentiment and growth potential in their respective industries. PSP Projects Ltd is poised to benefit from the ongoing infrastructure development in India, while RR Kabel Ltd and Gland Pharma Ltd are set to capitalize on the growing demand for electrical goods and pharmaceuticals, respectively. Transformers & Rectifiers India Ltd and Jupiter Wagons Ltd stand to gain from India’s push towards energy efficiency and transportation infrastructure.

As institutional investors continue to increase their stakes, retail investors may find these companies attractive for their portfolios, particularly for long-term growth. However, it is crucial to conduct thorough research and consider market conditions before making any investment decisions.

Disclaimer: We are not SEBI-registered advisors, and the information provided here is for informational purposes only. This is not a buy or sell recommendation. Please consult with a financial advisor before making any investment decisions.