Synopsis: Six small-cap stocks saw strong FII buying in the latest quarter, with holdings rising to 28 percent, while continuing to trade at attractive valuations versus industry peers.
Indian small-cap stocks have recently seen renewed institutional interest, particularly from Foreign Institutional Investors (FIIs), amid improving valuations and selective sectoral recovery. A key trend emerging in the latest quarterly shareholding data is the sharp rise in FII participation across fundamentally strong yet undervalued companies.
Six small-cap stocks have witnessed strong FII participation in the latest quarter, with holdings reaching up to 28 percent in select cases. These stocks continue to trade at attractive valuations compared to industry peers, highlighting improving fundamentals, earnings visibility, and rising investor confidence across diversified sectors. Here are the stocks that are undervalued with increasing FII holdings
Marksans Pharma Ltd
Marksans Pharma Ltd is a pharmaceutical company engaged in the research, manufacturing, and marketing of generic formulations across key therapeutic segments. The company has a strong presence in regulated international markets, including the UK, US, and Australia, while also expanding its portfolio through product launches and strategic market penetration initiatives.
With a market capitalization of Rs 11,431 crore, the share of the company is currently trading at Rs 252 per share, reflecting an undervalued P/E of 27.3x compared to the industry P/E of 32.2x. FIIs have also shown increased interest, raising their holding QoQ to 16.76 percent in Q4 FY26 from 8.13 percent in Q3 FY26, which is an increase 8.63 percent of indicating improving institutional confidence.
PC Jeweller Ltd
PC Jeweller Ltd is a leading jewellery retailer engaged in the manufacture, sale, and export of gold, diamond, and silver jewellery. The company operates through a wide retail network and focuses on enhancing operational efficiency, reducing debt, and strengthening its balance sheet while catering to evolving consumer demand.
With a market capitalization of Rs 8,914 crore, the share of the company is currently trading at Rs 9.18 per share, reflecting an undervalued P/E of 12.4x compared to the industry P/E of 15.5x. FIIs have also shown increased interest, raising their holding QoQ to 13.28 percent in Q4 FY26 from 10.40 percent in Q3 FY26, which is an increase of 2.88 per cent, indicating improving institutional confidence.
Ceinsys Tech Ltd
Ceinsys Tech Ltd is a technology-driven company providing geospatial engineering, enterprise solutions, and digital transformation services. The company serves sectors such as infrastructure, utilities, transportation, and governance, leveraging advanced technologies including GIS, remote sensing, and data analytics to support large-scale development projects.
With a market capitalization of Rs 2,004 crore, the share of the company is currently trading at Rs 957 per share, reflecting an undervalued P/E of 14.9x compared to the industry P/E of 20.4x. FIIs have also shown increased interest, raising their holding QoQ to 10.25 percent in Q4 FY26 from 4.33 percent in Q3 FY26, which is an increase of 5.92 per cent, indicating improving institutional confidence.
Jamna Auto Industries Ltd
Jamna Auto Industries Ltd is one of India’s leading manufacturers of suspension solutions for commercial vehicles. The company specializes in leaf and parabolic springs, serving major original equipment manufacturers and the replacement market. It continues to benefit from its strong market position, extensive distribution network, and product innovation.
With a market capitalization of Rs 5,037 crore, the share of the company is currently trading at Rs 126 per share, reflecting an undervalued P/E of 21x compared to the industry P/E of 27.7x. FIIs have also shown increased interest, raising their holding QoQ to 9.25 percent in Q4 FY26 from 5.20 percent in Q3 FY26, which is an increase of 4.05 per cent, indicating improving institutional confidence.
Antony Waste Handling Cell Ltd
Antony Waste Handling Cell Ltd is a prominent player in the municipal solid waste management sector, offering collection, transportation, processing, and disposal services. The company operates waste processing facilities across multiple cities and focuses on sustainable waste management solutions through recycling, waste-to-energy, and scientific landfill operations.
With a market capitalization of Rs 1,292 crore, the share of the company is currently trading at Rs 455 per share, reflecting an undervalued P/E of 17.1x compared to the industry P/E of 23.8x. FIIs have also shown increased interest, raising their holding QoQ to 14.79 percent in Q4 FY26 from 11.78 percent in Q3 FY26, which is an increase of 3.01 per cent, indicating improving institutional confidence.
Great Eastern Shipping Company Ltd
Great Eastern Shipping Company Ltd is India’s largest private-sector shipping company, operating a diversified fleet comprising crude oil tankers, product carriers, gas carriers, and dry bulk vessels. The company also has an offshore business segment serving the oil and gas industry, providing stable revenue streams across market cycles.
With a market capitalization of Rs 20,073 crore, the share of the company is currently trading at Rs 1,406 per share, reflecting an undervalued P/E of 6.82x compared to the industry P/E of 11.7x. FIIs have also shown increased interest, raising their holding QoQ to 28.44 percent in Q4 FY26 from 25.70 percent in Q3 FY26, which is an increase of 2.74 per cent, indicating improving institutional confidence.
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