Investors closely track investment/ divestment by FIIs as are considered both a trigger and a catalyst for the performance of the market. Inflows of money by institutional investors give investors confidence in the company in which they have invested. It helps them get broader trends and find what’s happening in the market. In fact, the Indian share market is largely driven by institutional money.
Here are a few multibagger stocks in which FIIs recently increased their stake:
Servotech Power Systems Ltd.
Servotech Power Systems manufactures LED lighting solutions, UPS (uninterruptible power supply) systems, inverters, and batteries. FIIs bought a 9.42% stake in the company in the quarter that ended on December 31, 2022. The company’s shares closed at ₹40.30 apiece on Friday and it is a small-cap company with a market capitalization of ₹ 428 crores.
The company’s share price increased from ₹ 12.71 apiece in August 2022 to the current levels, giving multibagger returns of 217%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares in August last year, the value of their holdings would have been ₹ 3.17 lakhs today!
Tilaknagar Industries Ltd.
The company manufactures and sells Indian Made Foreign Liquor (IMFL). FII’s increased their stake in the company to 10.38% in the October to December quarter of 2022. They held a 1.91% stake in the previous quarter. Tilaknagar Industries is a small-cap company with a market capitalization of ₹ 2,078 crores and its shares closed at ₹ 114.30 apiece on Friday.
The company’s share price increased from ₹ 51.80 apiece in May 2022 to the current levels, giving multibagger returns of 120%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares in May last year, the value of their holdings would have been ₹ 2.20 lakhs today!
The South Indian Bank Ltd.
South Indian Bank is engaged in retail and corporate banking, para-banking services Treasury and Foreign Exchange Business. FIIs increased their stake in the company from 7.82% to 14.88%. The banking company’s shares closed at ₹ 17.85 apiece and it is a small-cap company with a market capitalization of ₹ 3,736 crores.
The company’s share price increased from ₹ 7.90 apiece in August 2022 to the current levels, giving multibagger returns of 124%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares in August last year, the value of their holdings would have been ₹ 2.24 lakhs today!
A few other stocks in which FIIs increased their stake are Yes Bank, PB Fintech, GMM Pfaudler, Accuracy Shipping and Macrotech Developers.
Written by Simran Bafna
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