Foreign Institutional Investors (FIIs) are recognized as market drivers. They are institutional investors from outside the nation who invest in a certain country’s stock market. When they purchase a new investment or expand their exposure in a firm, it may indicate the potential for the stock’s value to soar.In addition,It give insights into overall market sentiments. As a result, Monitoring at FII purchases is significant for market participants.
Here are 2 small cap stocks in which FIIs recently increased their stake:
Equitas Small Finance Bank Ltd.
Equitas Small Finance Bank offers a wide range of banking products and services to customers which include the provision of small business loans,housing loans, and agriculture loans to micro-entrepreneurs, microfinance.
Equitas Small Finance Bank shares were trading at Rs 96.50, up 0.73 percent from the previous close price on wednesday and it is a small cap stock with a market value of Rs 10,772 crores.
FIIs increased their investment from 4.09 percent in the first quarter of FY 22-23 to 21.45 percent in the first quarter of FY23-24.As of the June quarter of FY 23-24, retail investors owned 35.58 percent of the firm.
The company’s stock has gained 76 percent in six months and 106 percent in a year.
The interest earned by Equitas Small Finance Bank grew by 20 percent year on year, from Rs 3,459 crore in FY 21-22 to Rs 4,161 crore in FY 22-23. Net Profit climbed by 104 percent within the same time, from Rs 281 crore to Rs 574 crore.
Profitability ratios improved over the years, return on equity is 11.12 percent for fiscal year 2023, and return on capital employed is 3.50 percent.
Subros Ltd
Subros Limited was established in 1985,manufactures air conditioning systems for all major automakers, passenger and commercial vehicle companies. As of FY23, the company has a 40% market share in passenger car air conditioning and a 45% market share in truck air conditioning/blower.
Subros Ltd, the largest Commercial air-conditioned (AC) Manufacturer, shares were trading at Rs 415.60 on wednesday, up 2.12 percent from the previous close price, and it is a small-cap company with a market capitalization of Rs 2,768 crores.
FIIs raised investments from 0.72 percent in the first quarter of FY 22-23 to 32.59 percent in the first quarter of FY 23-24. The promoters hold 36.79 percent of the firm as of the June quarter of FY 23-24.
The stock increased by 44 percent in the last six months from Rs 293.85 to current levels, while it increased by 30.36 percent in the previous year from Rs 325.55 to current levels.
Company’s revenue increased by 25 percent year on year, from Rs 2,238 crore in FY 21-22 to Rs 2,806 crore in FY 22-23. During the same time period, Net Profit increased by 47 percent, rising from Rs 32 crore to Rs 47 crore.
Return on equity is 5.52 percent, return on capital employed is 8.39 percent, and the debt-to-equity ratio is 0.02 percent for fiscal year 2023.
Written by Omkar Chitnis
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