Discover how to identify fundamentally strong stocks using FII holdings. Learn why FIIs increasing stakes by over certain percentage signals long-term potential and explore technical analysis of these opportunities.
Introduction
In the world of investing, tracking what large institutional players are doing—especially Foreign Institutional Investors (FIIs)—can provide valuable insight for retail investors. FIIs are considered smart money, and when they increase their stake in any listed company on NSE/BSE by certain percentage, it's not just a random decision. It's the result of deep research and strong belief in the company's future potential.
In this article, we highlight a set of stocks where FIIs have recently (Latest Qtr.)raised their holdings by 2X-3X quantity. Alongside this, we also provide supporting technical analysis to help you understand why you should keep these stocks on your radar.
Why FII Holding Matters
Foreign Institutional Investors manage huge sums of global
capital. They do not take investing decisions emotionally or based on social
trends. Instead, they deploy sophisticated research teams to analyze companies
thoroughly before allocating funds.
When FIIs increase their stake in a company:
It reflects growing confidence in the company's fundamentals.
It indicates a potential for long-term growth.
It attracts attention from mutual funds, domestic institutions,
and retail investors.
For retail investors, this creates an opportunity to follow the
footprint of smart money with informed decisions, rather than speculating
blindly.
Our first pick is Clara Industries. FIIs holdings in
previous quarter stood at 6.1%, latest quarter holdings have become 27.7%.
The company was incorporated in 2014 and engaged in manufacturing
plastic packaging materials such as LDPE(Low density polyethylene), HDPE(High
density polypropylene), PP Polypropylene) and adhesive bags and related
products in packaging materials.
It has a market capitalization of ₹ 80.3 crore, stock PE=42.5
Dividend yield= 0.26%, ROCE=6.92%, ROE=4.50%.
Current stock price is ₹ 38.8.From the below chart of Clara Industries,
we can see that price is above 20 EMA in monthly chart, RSI above 50 in weekly
as well as in monthly chart.
Our 2nd pick is Ather Energy Ltd. Ll FIS holdings
in the previous qtr. stood at 7.0 %, while latest holdings have become 24.1%.
The company is a leading electric two wheelers manufacturer in India and
the 4th largest in sales volume in E2W. It was incorporated in 2013.The company
is engaged in designing, warehouse assembly of electric scooters, battery
packs, and supporting software systems.
The company has a market capitalization of ₹ 18599 crore, Stock PE= nil,
Dividend yield= 0.00, ROCE=-65.7%, ROE=-156%,
Current stock price is ₹ 499.From the below monthly chart of Ather
Energy, we can see that the stock is making higher high in monthly chart. Keep
it in your watch list.
Vertex Plus
Technologies Ltd. is our next pick. FIIs holdings in the previous qtr, stood at 3.9%, in the current qtr. it has become 15.8%.
The company was incorporated in 2010, providing information technologies
services. Its area of operations are technology consulting, digital
transformation, infrastructure, security and risk management.
The com8 has a market capitalization of ₹ 59.8 crore, stock PE= 68.0, Dividend
yield= 0.00%, ROCE=5, 85%, ROE= 3.73%,
Current stock price is ₹ 114.From the below chat of VTL we can see that
the stock crossed its IPO listed high of ₹106.Keep it on radar.
Our 4th pick is Vishal Fabrics. It was
incorporated in 1985 engaged in the business of manufacturing and selling of
Textile products such as dyed yarn, denim fabrics and job work on consignment
basis of textile products.
The company has a market capitalization of ₹ 723 crore, stock PE=21.16,
Dividend yield= 0.00, ROCE=Nil, ROE=Nil,
Current stock price is ₹ 32.48.From the below chart of VFL, we can see
that the stock price is above 20 EMA and price is in uptrend.
Our last pick is Apollo Micro System. It is a leading
technology company offering high performance, mission centric solutions to
defence sectors. It is specialized in electronic, electromechanical and
engineering solutions along with manufacturing and supply of advanced
systems.
The company has a market capitalization of ₹ 9157 crore, Stock PE= 134, Dividend
yield=0.08%, ROCE=14.5%, ROE=10.2%,
Current stock price is ₹ 275.30.From the below monthly chart we can see
that the stock is in an uptrend for a long time and price is above 20 EMA on
monthly chart. Keep it on your radar.
