When Foreign Institutional Investors (FIIs) increase their stake in small-cap stocks, it typically signals strong confidence in those companies. This often leads to positive market sentiment, potential price appreciation, and enhanced liquidity. Additionally, FIIs’ investment can attract domestic investors, who are seen as sophisticated, long-term investors.
Listed below are three such small-cap stocks in which Foreign Investors have increased their stake up to 9 percent in Q1 FY25
Popular Vehicles & Services Ltd
Popular Vehicles and Services Limited operates as an automobile dealership in India, offering comprehensive services throughout the vehicle’s ownership lifecycle. Their offerings include selling new vehicles, vehicle servicing and repairs, distribution of spare parts and accessories, and selling third-party financial and insurance products.
In the quarter ended June 2024, FIIs increased their stake in Popular Vehicles & Services Ltd from 7.01 percent in the March quarter, of 2024, to 16.01 percent stake in June 2024. The increase of 9 percent will benefit Popular Vehicles & Services Ltd to gain attention from other investors.
In Q4 FY24 Popular Vehicles & Services Ltd reported a 4.5 percent year-over-year increase in revenue from operations to Rs.1,364 crore and a 43 percent increase in net profit to Rs.20 crore, in the same period.
In Monday’s trading session, the company’s share price opened at Rs.233.2 per share, a 0.3 percent down from its previous close.
Last Mile Enterprises Limited
Last Mile Enterprises Limited is an India-based company engaged in construction and engineering business activity. The company is present across diverse sectors including multipurpose coating, real estate, agriculture, and consumer electronics.
In the quarter ended June 2024, FIIs increased their stake in Last Mile Enterprises Limited from 8.44 percent in the March quarter, of 2024, to 17.04 percent stake in June 2024. The 8.6 percent increased FII stake will reflect a positive outlook on the company’s future performance.
In Q1 FY25, Last Mile Enterprises reported a significant 5,285 percent year-over-year increase in revenue, reaching Rs.7.4 crore. Despite this, the company’s net loss increased to Rs.5.83 crore, compared to Rs.0.65 crore in the same period last year.
In Monday’s trading session, the company’s share price hit a 5 percent upper circuit limit of Rs.834.65 per share.
Hazoor Multi Projects Ltd
Hazoor Multi Projects Ltd (HMPL) specializes in infrastructure development as an EPC (Engineering, Procurement, and Construction) contracting company. It primarily works as a sub-contractor on national highway road projects awarded by government authorities.
In the quarter ended June 2024, FIIs increased their stake in Last Mile Enterprises Limited from 10.92 percent in the March quarter, of 2024, to 19.18 percent stake in June 2024. The 8.26 percent increased FII stake will reflect a positive outlook on the company’s future performance.
In Q4 FY24, Hazoor Multi Projects Ltd reported a significant 472.8 percent quarter-over-quarter increase in revenue, reaching Rs.464 crore, and a 440 percent increase in net profit to Rs.54 crore, in the same period.
In Monday’s trading session, the company’s share price opened at Rs.414.5 per share, a 4.3 percent increase from its previous close.
Written by – Siddesh S Raskar
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