By Maumita Mitra
Foreign Institutional Investors (FIIs) have been rigorously offloading their Indian equity investments for a long time now.
In the first three months of the calendar year 2025 alone, they have offloaded equities worth ₹1,16,574 crore.
This month, until 21st April, they have offloaded around ₹18,786 crore of equities. Though it must be said, this number masks the recent significant purchases made by FIIs in the Indian markets.
While the overall market sentiment amongst the foreign institutional investors (FIIs) has generally been negative for a whole host of reasons, there are a handful of stocks that have seen increased inflow from FIIs in Q4FY25.
In fact, it would not be incorrect to say that FIIs have been buying select stocks over the last few months at a breathtaking pace. We focussed on select stocks where FIIs significantly upped their holding in a company in a way that they now own over 10% of the outstanding shares.
With that said, here are the top three companies in that coveted list.
#1 Dhanlaxmi Bank (DBL)
Dhanlaxmi Bank, a private sector bank, witnessed a significant rise in FII holding in the fourth quarter of FY25. The FII holding increased by an astounding 8.31% points during the quarter, taking the overall holding to 15.26%.
While we cannot say for sure why FIIs buy a stock, perhaps, a key indicator could have been the improving outlook for the banking sector, and of course, the reduction in its Non Performing Assets (NPAs).
Dhanlaxmi Bank’s Net NPA significantly reduced to 0.86% during the Q3FY25, from 1.27% in the corresponding quarter of the previous fiscal and 1.12% in the last quarter, that is, Q2FY25.
The Net NPA also reduced during the second quarter of FY25, and this consistent reduction in the NPA for consecutive quarters might have worked out for this private sector lender.
Apart from a reduction in the NPA, Dhanlaxmi’s revenue growth has been rising for the past three quarters, and in the Q3FY25, the bank witnessed a whopping 551% growth year-on-year (YOY) in its Net Profit.
The overall banking sector outlook for FY26 also seems positive, with the recent rate cuts, reduction in the Statutory Liquidity Ratio (SLR), and liquidity influx by the RBI to boost the banking sector may also have played an important role in bringing FII investments to this private sector bank.
The top three FIIs that bought stakes of Dhanlaxmi Bank in Q4FY25 include –
- Ares Diversified purchased 3.74% stake
- Ayushmat Limited bought a 3.38% stake
- Coeus Global Opportunities Fund Limited bought 3.10% stakes
Furthermore, Unico Global Opportunities Fund Limited increased its stake from 2.61% to 2.70% in this quarter.
#2 Aptus Value Housing Finance India Ltd. (APTUS)
Aptus Value Housing Finance India Ltd. (Aptus), a housing finance company primarily servicing the low to middle-income families, witnessed a 5.88% points rise in its FII holding for the January-March 2025 quarter, taking total FII holding to 27.74%.
While it is difficult to pinpoint a particular factor driving the FII investment, however, its consistent growth in sales and net profit, along with a stable operating margin, might have been what attracted the FIIs.
Both sales and net profit of the housing finance firm surged above 20% YoY for the past nine consecutive quarters. In Q3FY25, the sales touched ₹450 crores, increasing from ₹351 crores a year back. The net profit of the firm surged from ₹158 crore in Q3FY24 to ₹190 crore in Q3FY25, taking the EPS to ₹3.81 from ₹3.16 a year back.
Another factor that might have caught the eyes of the FIIs is the dividend yield ratio, which is 1.38% for Aptus, while the median of the peers stands at 0.28% only. Even the dividend payout ratio of the firm is quite attractive at 18.8%
Aptus also has a P/E ratio of 23.06, which is close to the median P/E of the peers, indicating that relatively speaking, the stock may not be over priced..
The top three FIIs that bought stakes of Aptus in Q4FY25 include –
- Malabar India Fund Ltd. bought 4.18% stakes
- WF Asian Reconnaissance Fund increased its stake to 4.06%
- Malabar Select Fund bought a 1.78% stake
#3 Cartrade Tech Ltd. (CARTRADE)
Cartrade Tech, a multi-channel automobile platform connecting new and used car dealers, owners, OEMs, etc has seen its FII holding increasing by 5.84% points during Q4FY25, taking its total FII holding to a mammoth 60.96%.
Cartrade Tech has been one of its kind which can be one probable reason for FIIs to increase their bets on this automobile platform.
The massive growth in the net profit of the auto platform, especially for the past two quarters, might have caught the eyes of the FIIs. In Q2FY25, the net profit surged by 101% YoY, while in Q3FY25, it went up by 94% YoY. This massive rise in the net profit came even as the sales growth slowed down. With the rise in the net profit, the EPS has also surged to ₹9.01 in Q3FY25 from ₹5.89 in Q2FY25.
Another factor that may have influenced the FIIs to buy this stock is the debt-free nature of the company.
The top three FIIs that bought stakes of Cartrade Tech in Q4FY25 include –
- Macritchie Investments Pte Ltd. bought a 9.13% stake
- The Prudential Assurance Company Ltd. increased its stake to 2.91%
- Jupiter India Fund increased its stake to 2.34%
Also, Oxbow Master Fund Ltd. increased its stake in the company significantly to 2.82% during the quarter.
There are two other stocks where FII holding increased during the Jan-Mar quarter –
- Sammaan Capital: FII holding increased by 5.16%, taking the total FII holding to 24.69%
- Restaurant Brand: FII holding increased by 5.06%, taking the total FII holding to 20.37%.
Final thoughts
The surge in the FII holding in these select stocks indicates there may be potential in these stocks. While Dhanlaxmi Bank showcases a reduction in the NPA, the other two witnessed a significant surge in their profits. It will be interesting to see whether FIIs continue with these investments in the future and for how long.
Disclaimer
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
