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The first quarter of FY24 concluded on June 30. With the start of the new quarter, companies will begin sharing their first-quarter results with investors and other stakeholders. Along with disclosing the financial performance of the company, investors also start receiving updates on changes in the shareholding pattern. This information allows us to understand if there have been any modifications made by various participants, including promoters, Foreign Institutional Investors (FIIs), Domestic Institutional Investors (DIIs), and public investors.
As investors, we are always curious to know which FIIs and DIIs are buying shares or increasing their existing stakes in which company. It’s not just FIIs and DIIs that hold importance, we also pay close attention to the movements of High-Net-Worth Individuals (HNIs) and veteran investors who have a stake in a particular company.
These market participants namely FIIs and DIIs play a significant role in the stock market and have a notable impact on the performance and valuation of companies. When FIIs and DIIs increase their stake in a specific company, it often leads to significant implications for the share price.
As a change of approach, let’s conduct a backtest on the performance of the top ten company’s shares performance, specifically focusing on the companies where FIIs and DIIs increased their stakes in Q4 FY23. This analysis will help us make informed decisions before purchasing any shares in the upcoming days.
| Company Name | Sector / Industry | FII Holding % in Q4 FY23 | Change in FII Holding % | Price on 03 April Rs | CMP Rs | % Return |
| Titagarh Rail Systems | Engineering | 12.6 | 6.5 | 277.1 | 530.3 | 91% |
| Ugro Capital | Finance | 22.7 | 15.7 | 149.5 | 223.0 | 49% |
| Subros | Auto Ancillaries | 32.6 | 32.0 | 301.1 | 448.5 | 49% |
| Kamdhenu Venture | Paints | 14.6 | 14.3 | 206.7 | 300.0 | 45% |
| Max Healthcare | Healthcare | 59.9 | 7.9 | 430.4 | 620.0 | 44% |
| Orchid Pharma | Pharmaceuticals | 8.6 | 7.8 | 385.2 | 524.0 | 36% |
| Sona BLW Precision | Auto Ancillaries | 24.7 | 13.4 | 410.0 | 542.5 | 32% |
| Ramco Systems | IT – Software | 7.8 | 7.8 | 196.9 | 249.3 | 27% |
| Bhartiya International | Leather | 8.6 | 8.6 | 168.8 | 209.9 | 24% |
| Go Fashion (I) | Textiles | 16.6 | 10.2 | 1,005.7 | 1,125.2 | 12% |
| Company Name | Sector / Industry | DII Holding % in Q4 FY23 | Change in DII Holding % | Price on 03 April Rs | CMP Rs | % Return |
| Dixon Technology | Consumer Durables | 23.8 | 4.8 | 2,893.0 | 4,297.7 | 49% |
| Orchid Pharma | Pharmaceuticals | 13.5 | 10.8 | 385.2 | 524.0 | 36% |
| CMS Info Systems | IT – Software | 21.0 | 8.4 | 284.8 | 385.9 | 35% |
| Sona BLW Precision | Auto Ancillaries | 31.3 | 6.9 | 410.0 | 542.5 | 32% |
| Timken India | Bearings | 19.1 | 6.7 | 2,764.9 | 3,469.9 | 25% |
| Coforge | IT – Software | 32.2 | 5.5 | 3,851.4 | 4,755.5 | 23% |
| Sansera Engineering | Auto Ancillaries | 24.3 | 7.3 | 738.6 | 907.3 | 23% |
| Aether Industries | Chemicals | 13.7 | 5.3 | 923.4 | 1,074.1 | 16% |
| Kirloskar Oil | Engines | 28.0 | 13.3 | 395.1 | 400.9 | 1% |
| RHI Magnesita | Refectories | 14.1 | 6.2 | 627.2 | 609.0 | -3% |
Among the above-mentioned companies, Orchid Pharma and Sona BLW Precision stand out as both FIIs and DIIs increased their investments in these companies. Additionally, the stocks of these companies have shown impressive returns of approximately 36% and 32%, respectively.
The top performer among all the companies is Titagarh Rail System Ltd, generating a remarkable return of about 91%. Dixon Technologies follows closely behind with a return of approximately 49%.
On the other hand, two companies have experienced flat or negative returns. Kirloskar Oil delivered a flat return of 1%, while RHI Magnesita recorded a negative return.
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.
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