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Top 5 small-cap stocks where FIIs and DIIs increased stake

29 February 20245 mins read by Angel One
One stock, with significant change in stakes from both FIIs and DIIs in the December quarter, has delivered an impressive 100% return in the past year.
Top 5 small-cap stocks where FIIs and DIIs increased stake
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Investors are always on the lookout for opportunities in the stock market, seeking stocks with potential for growth and value. One promising strategy is to identify stocks where Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have increased their stake, indicating a vote of confidence in the company’s future prospects.

Additionally, finding stocks trading at a discount from their all-time high prices adds another layer of potential for lucrative returns. Furthermore, we have kept the company’s market capitalisation below Rs 5000 crore, with a price-to-earnings ratio above 10, and the stock trading at a discount ranging from 15% to 30% from its all-time high. In this article, we will explore the top 5 stocks that meet these criteria.

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.

Companies with increased DII investment:

Company Name CMP Rs M Cap Rs Cr 1-Yr Return % ROE % ROCE % ATH Diff % Change in DIIs %
AXISCADES Tech. 685.40 2,863.62 121.18 -9.58 22.85 19.36 7.64
Arman Financial 2,260.05 2,211.99 63.81 32.57 18.74 15.67 6.89
Onward Technologies 568.10 1,278.32 98.31 6.67 10.37 23.23 5.31
Praveg 942.70 2,153.09 75.43 42.96 56.15 27.48 3.36
DCX Systems 325.45 3,625.07 100.53 20.92 13.12 17.19 3.26

Companies with increased FII investment:

Company Name CMP Rs M Cap Rs Cr 1-Yr Return % ROE % ROCE % ATH Diff % Change in FIIs %
DCX Systems 325.55 3,626.18 100.53 20.92 13.12 17.16 6.68
Paramount Comm. 89.30 2,496.90 167.66 21.18 13.78 23.58 6.53
Apollo Micro Sys 133.90 3,780.77 310.44 6.49 12.07 17.22 5.74
Ami Organics 1,089.50 4,018.14 18.27 15.02 20.58 24.26 4.51
Arman Financial 2,273.80 2,225.45 63.81 32.57 18.74 15.16 2.75

Conclusion:

Identifying stocks where FIIs and DIIs have increased their stake can be a valuable strategy for investors. Combining this approach with a focus on stocks trading at a discount from their all-time high prices adds an extra layer of potential for returns. As with any investment, thorough research and due diligence are essential to make informed decisions based on individual financial goals and risk tolerance.

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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