Small-cap stocks refer to companies with relatively smaller market capitalizations. These companies may not be as large or well-known as big corporations, but they carry high growth potential. Investors keep a close watch on small-cap stocks because they can deliver significant returns if the company performs well over time.
The important indicator of a company’s potential is the interest shown by institutional investors, such as Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs). When these large investors increase their stake in a company, it often signals confidence in the company’s future growth. This is because FIIs and DIIs usually conduct deep research before making investment decisions.
In the latest quarter, many small-cap companies saw an increase in holdings by both FIIs and DIIs. This trend suggests that these stocks may be gaining attention due to strong fundamentals, growth prospects, or favorable market conditions. In this article, we will look at such small-cap stocks.
Here is the list of stocks to look out for:
Kfin technologies Ltd
KFin Technologies Limited is a leading technology-driven financial services platform that serves the mission-critical needs of asset managers, including mutual funds, alternative investment funds (AIFs), pension funds, wealth managers, and corporates in India and internationally.
The company between March and June 2025, there was a good increase in institutional investor participation. Foreign Institutional Investors (FIIs) significantly raised their stake from 22.56% in March to 27.81% in June. Similarly, Domestic Institutional Investors (DIIs) also increased their holdings, moving from 20.37% to 23.71%, reflecting growing confidence in the market and the company during this period.
Sai Life Sciences Ltd
Sai Life Sciences Ltd is a leading Contract Research, Development, and Manufacturing Organization (CRDMO) based in Hyderabad, India. Established in 1999, it partners with global pharma and biotech companies to accelerate drug discovery and development. The company offers integrated services across medicinal chemistry, biology, DMPK, toxicology, and cGMP manufacturing.
The company between March and June 2025, there was a good increase in institutional investor participation. Foreign Institutional Investors (FIIs) significantly raised their stake from 12.36% in March to 14.57% in June. Similarly, Domestic Institutional Investors (DIIs) also increased their holdings, moving from 13.26% to 21.64%, reflecting growing confidence in the market and the company during this period.
LT Foods Ltd
LT Foods Limited, established in 1990, is a leading Indian-origin global FMCG company specializing in the consumer food space. The company is a key player globally in the specialty rice and rice-based foods business and are best known for its flagship brands, DAAWAT and Royal, which are popular Basmati rice brands in India and North America, respectively.
The company between March and June 2025, there was a good increase in institutional investor participation. Foreign Institutional Investors (FIIs) significantly raised their stake from 9.79% in March to 10.15% in June. Similarly, Domestic Institutional Investors (DIIs) also increased their holdings, moving from 6.16% to 7.22%, reflecting growing confidence in the market and the company during this period.
Angel One Ltd
Angel One Limited, formerly known as Angel Broking Limited, is a prominent Indian financial services company and a technology-driven broking house. Established in 1996, it’s a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited, and Multi-Commodity Exchange of India Limited.
The company between March and June 2025, there was a good increase in institutional investor participation. Foreign Institutional Investors (FIIs) significantly raised their stake from 13.05% in March to 14.66% in June. Similarly, Domestic Institutional Investors (DIIs) also increased their holdings, moving from 14.27% to 16.43%, reflecting growing confidence in the market and the company during this period.
Written by Sridhar J
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