Foreign institutional investors increase their stake in these 5 Indian companies

Foreign Institutional Investors (FIIs) have significantly increased their stakes in several prominent Indian companies in the quarter ending September 2023. This development is indicative of foreign investors’ growing confidence in the Indian market, underlining the country’s status as an attractive investment destination. Let’s delve into the details of the FIIs’ increased shareholdings in these companies.

1. Five Star Business 

FIIs augmented their stake in Five Star Business by an impressive 41.48%, reflecting their unwavering belief in the company’s growth potential and financial stability. Five Star Business, with its diverse range of services, has evidently caught the eye of foreign investors. Notably, in Q2FY24, the company reported an EBITDA of Rs 378.55 crore, marking a robust 46% increase compared to Q2FY23, with a PAT of Rs 199.39 crore, a notable 38% growth from the same quarter the previous year.

2. HDFC Bank 

HDFC Bank, one of India’s leading private sector banks, observed an 18.75% surge in FII ownership during the same quarter. The bank’s consistent growth and strong financial performance have been pivotal in attracting FII interest. Furthermore, HDFC Bank’s resilient business model and sound financials make it an enticing choice for foreign investors. In Q2FY24, HDFC Bank reported an EBITDA of Rs 24,279.12 crore, a substantial 29.69% increase compared to Q2FY23. The PAT came in at Rs 17,312.38 crore, reflecting an impressive 55.09% growth from the previous year’s corresponding quarter.

3. Sula Vineyards 

Sula Vineyards, a prominent name in the Indian wine industry, saw a 13.83% increase in FII ownership. This surge in foreign investment underscores the potential of the Indian wine market and the company’s role as a significant player in the industry. In Q1FY24, Sula Vineyards reported an EBITDA of Rs 31.92 crore, reflecting a noteworthy 22.2% increase compared to Q1FY23, with a PAT of Rs 13.68 crore, indicating a substantial 24.36% growth from the previous year’s corresponding quarter.

4. Xpro India 

Xpro India experienced a notable 11.91% increase in FII ownership. Despite being a smaller player, it has garnered the attention of foreign investors, likely owing to its potential for expansion and its strategic position in its industry. In Q1FY24, Xpro India reported an EBITDA of Rs 20.37 crore, marking a 14.01% decline compared to Q1FY23. The PAT came in at Rs 11.29 crore, reflecting a substantial 39.03% decline from the previous year’s corresponding quarter.

5. Titagarh Railsystems 

Titagarh Railsystems, a pivotal player in the railway manufacturing sector, witnessed an FII stake increase of 9.8%. The company’s involvement in critical infrastructure projects and its strong track record have likely contributed to the rise in foreign investment. In Q2FY24, Titagarh Railsystems reported an EBITDA of Rs 121.86 crore, marking a substantial 70.87% increase compared to Q2FY23. However, the PAT came in at Rs 70.89 crore, reflecting a substantial 106.55% decline from the previous year’s corresponding quarter.

In conclusion, the significant increase in FII stakes in these companies is a testament to the resilience and potential of the Indian market. Foreign investors are increasingly considering India as a destination for long-term investments, and these companies have demonstrated their capability to deliver returns and contribute to the country’s economic growth. As India continues to attract foreign capital, it reinforces its position as a promising investment hub on the global stage, further solidifying its status as an attractive investment destination for FIIs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.