Best Metal Stocks With High FII Holdings: Foreign Institutional Investors (FIIs) play an important role in boosting investor confidence. Their participation shows that these investors undertook extensive due diligence and analysis before contributing their funds. The participation of FIIs can be interpreted as a vote of confidence in a company’s prospects, adding to a stock’s appeal as a possible investment opportunity.
In this article, we shall see the Best Metal Stocks With High FII Holdings and take a look at fundamentals and their business overview.
Table of Contents
Best Metal Stocks With High FII Holdings
1. APL APOLLO TUBES LIMITED
APL Apollo Tubes Limited began in 1986 with a manufacturing plant in Sikandrabad, Ghaziabad, and has since grown to become India’s largest Structural Steel Tubing Company, with a capacity of 3.6 million tons per year and a market share of 55%.
They provide a diverse range of steel goods. With 11 manufacturing units and an extensive distribution network of warehouses and branch offices in 29 locations around the country, it serves 20 countries worldwide.
APL Apollo Tubes has the highest FII holding of 28.66% as of 30th September 2023. SmallCap World Fund INC is the largest holder with 6.21% followed by K India Opportunities Fund Limited Class S with 2%.
The Company’s financials show a 24% increase in revenue from Rs.13063 Cr. in FY22 to Rs.16166 Cr. in FY23 and a 4% increase in net profit from Rs.619 Cr. in FY22 to Rs.642 Cr. in FY23. ROCE and ROE decreased slightly owing to only 16.7% utilization of their new facility at Raipur as it was its first year. The company has a goal of achieving 5mnT capacity by 2025, for which they are setting up operating facilities in Kolkata and Dubai.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 1,632.2 | Market Cap (Cr.) | 44,611 |
| EPS(TTM) | 20.86 | Stock P/E | 75.02 |
| RoE | 23.50% | RoCE | 29% |
| Promoter Holdings | 29.67% | FII Holdings | 28.66% |
| Debt to Equity | 0.1 | Price to Book Value | 15.92 |
2. HINDALCO INDUSTRIES LIMITED
Hindalco Industries Limited, founded in 1958, is a component of the Aditya Birla Group, one of India’s largest and most diverse corporations. Hindalco has evolved into a prominent integrated manufacturer of aluminum and copper goods for more than sixty years, having a strong presence in both national and worldwide markets.
Hindalco’s operations include mining, alumina refining, aluminum smelting, downstream processing, copper smelting, and dedicated R&D centers. The company is the world’s largest aluminum rolling company and one of Asia’s main primary aluminum producers. Hindalco has 47 units in 10 countries throughout the world.
Hindalco has the second largest FII holding of 27.01% in this sector and an additional 3.68% is held by overseas depositories as of 30th September 2023. The major foreign shareholder is the Govt of Singapore with 4.04%.
The company’s financials show a 14% increase in revenue from Rs.67653 Cr. in FY22 to Rs.76878 Cr. in FY23 and a 40% decrease in PAT from Rs.5507 Cr. in FY22 to Rs.3326 Cr. in FY23. This decline was on account of lower consolidated profits recorded during the reporting period.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 551 | Market Cap (Cr.) | 1,19,787 |
| EPS(TTM) | 11.03 | Stock P/E | 43.83 |
| RoE | 11.67% | RoCE | 11% |
| Promoter Holdings | 34.64% | FII Holdings | 27.01% |
| Debt to Equity | 0.64 | Price to Book Value | 1.88 |
| Operating Margin | 10.30% | PAT Margin | 4.50% |
3. JSW STEEL LIMITED
JSW Steel is the only Indian business that has been continually placed among the top 15 worldwide steel manufacturers by World Steel Dynamics for an amazing 13 straight years, beginning in 2008.
JSW Steel has 14 manufacturing facilities in India with 13 Iron ore mines with a capacity of 29.7 MTPA
The company’s financial show a 13% revenue growth from Rs.146371 Cr. in FY22 to Rs.165960 Cr. in FY23 and the profit after tax saw a decline of 80% from Rs.20938 Cr. in FY22 to Rs.4139 Cr. in FY23due to lower export volumes following the imposition of export duty and pricing pressure in the domestic market.
JSW Steel has the third highest FII holdings of 26.13% as of 30th September 2023. The largest shareholder is JFE Steel International Europe B.V. with a 15% stake.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 862.7 | Market Cap (Cr.) | 2,08,095 |
| EPS(TTM) | 35.34 | Stock P/E | 21.04 |
| RoE | 6.10% | RoCE | 8% |
| Promoter Holdings | 44.80% | FII Holdings | 26.13% |
| Debt to Equity | 1.18 | Price to Book Value | 2.56 |
| Operating EBITDA Margin | 11.20% | PAT Margin | 2.49% |
4. JINDAL STAINLESS LIMITED
Jindal Stainless, founded in 1970 by Shri OP Jindal, has risen to a reputation as India’s leading stainless steel company. The company works from two stainless steel manufacturing complexes in India, located in Haryana and Odisha, as well as an overseas operation in Indonesia, with an amazing annual melt capacity of 3 million metric tons. Jindal Stainless has a global footprint, with operations in 15 different countries.
The company’s product portfolio encompasses a wide range of stainless steel offerings, including slabs, blooms, coils, plates, sheets, precision strips, blade steel, and coin blanks.
The company’s product portfolio encompasses a wide range of stainless steel offerings, including slabs, blooms, coils, plates, sheets, precision strips, blade steel, and coin blanks.
The company reported a 9% increase in revenue from Rs.32732.65 Cr. in FY22 to Rs.35697.03 Cr. in FY23 but a 33% drop in profits from Rs.3109.39 Cr. in FY22 to Rs2083.83 Cr. in FY23, owing mostly to an export tariff on SS products that went into effect in May 2022 and lasted until November 2022. Higher export duties made Indian SS less competitive globally, leading to a staggering 53% decline in exports during the first half of FY23.
Jindal Stainless has the fourth largest FII holding of 23.97% as of 30th September 202 with ELM Papark Fund Limited being the largest shareholder with 6.7% followed by Hypnos Fund Limited with 4.4% shareholding.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 553.15 | Market Cap (Cr.) | 46,013 |
| EPS(TTM) | 27.75 | Stock P/E | 16.32 |
| RoE | 19.00% | RoCE | 21% |
| Promoter Holdings | 57.87% | FII Holdings | 23.35% |
| Debt to Equity | 0.2 | Price to Book Value | 2.98 |
| EBITDA Margin | 10.20% | PAT Margin | 5.70% |
5. TATA STEEL LIMITED
Tata Steel was founded in Jamshedpur, Jharkhand, India in 1907 by the visionary Jamsetji Nusserwanji Tata. Today, it is one of the most geographically diverse steel producers in the world, with activities and a commercial presence all over the world. With 35MnTPA steel capacity, the Tata Steel group has an impressive reach on five continents.
The company reported slightly lower revenue of 0.2% from Rs.243352.69 Cr. in FY22 to Rs.243959.17 Cr. in FY23 and an 81% decline in PAT from Rs.41749.32 Cr. in FY22 to Rs.8075.35 Cr. in FY23. The financial performance of the company in the fiscal year 2022-2023 was mainly affected by a higher cost structure.
This cost rise was mostly due to increased energy and emission-related charges, as well as raw material price volatility. These variables created considerable obstacles to the company’s financial results throughout this period.
Tata Steel FII holding stands around 20.5% as of 30th September 2023, with the largest shareholder being Govt. of Singapore holding 1.65%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 134.65 | Market Cap (Cr.) | 1,61,524 |
| EPS(TTM) | 2.02 | Stock P/E | 59.35 |
| RoE | 7.27% | RoCE | 12% |
| Promoter Holdings | 33.90% | FII Holdings | 20.30% |
| Debt to Equity | 0.61 | Price to Book Value | 1.16 |
| EBITDA Margin | 13.44% | PAT Margin | 3.32% |
List of Metal Stocks with High FII Holdings
The list below puts together 10 Metal Stocks with High FII Holding
| Name | Market Cap | CMP | FII(%) |
|---|---|---|---|
| Jindal Saw Ltd. | 13,771 | 438 | 17.71 |
| Visa Steel Ltd. | 166.74 | 14.4 | 17.42 |
| Ratnamani Metals & Tubes Ltd. | 24,098 | 3,553.05 | 12.87 |
| Usha Martin Ltd. | 8,959.42 | 298.35 | 12.03 |
| Shankara Building Products Ltd. | 1,691.03 | 713.05 | 11.45 |
| Motherson Sumi Wiring India Ltd. | 26,659 | 60.85 | 11.05 |
| Ratnaveer Precision Engineering Ltd. | 596.05 | 122.9 | 10.47 |
| Gravita India Ltd. | 7756.75 | 1123.55 | 9.99 |
| Supershakti Metaliks Ltd. | 530.16 | 460 | 9.92 |
| Welspun Corp Ltd. | 14,008 | 533.95 | 9.42 |
Conclusion
As we conclude our article on ‘Best Metal Stocks With High FII Holdings’, we can say that high FII holding can be used as a parameter for assessing a company’s potential. However, it’s not advisable to invest solely based on the stake of the foreign investors. Instead, it’s important to evaluate a stock based on multiple criteria. We look forward to hearing your thoughts on this subject in the comments below.
Written By Ashish Agarwal
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