Foreign Institutional Investors (FIIs) are considered as market movers. They are institutional investors from outside the country who invest in the stock market of a specific nation. Market players, analysts, and investors closely monitor FII purchase activity because it can give insight into wider market sentiments and investor interest in individual nation stocks. When FIIs buy equities, it signals optimistic market sentiments and confidence.
Here are three Small-cap stocks where FIIs increased their stake up to 15% in the June Quarter
Avalon Technologies Ltd
The company has a market capitalization of Rs 3,404 crores and is a small-cap stock. Company shares were trading at Rs 521.30 on Friday, down 10.39 percent from the previous close price.
In Q1FY23-24, foreign institutional investors bought a fresh 12.47 percent stake in Avalon Technologies. Domestic institutional investors own 16.58 percent of the company.
The stock has gained 46 percent in the previous six months, from Rs 397 to present price.
In FY 22-23, the company’s operational sales climbed by 12 percent to Rs 944 crores over the previous year. Similarly, over the same time period, net profit decreased by 23 percent to Rs 52 crores.
Avalon Technologies Limited provides end-to-end capabilities on high-value precision-engineered products.
Ugro Capital Ltd
The company belongs to the Small-cap category with a market capitalization of Rs 2,776 crores. On Friday company shares were trading at Rs 297 a share, down 2.35 percent from the previous close price.
Foreign institutional investors have increased their stake in the company by 15.04 percent,i.e., from 6.95 percent in Q4FY 22-23 to 21.99 percent in Q1 FY 23-24. And domestic institutional investors hold 5.46 percent of the firm.
The stock has delivered a multibagger gain of 103 percent in the previous six months, while it returned 71 percent last year.
Ugro Capital reported an 80 percent increase in sales to Rs 213 crore in Q1FY24, compared to Rs 118 crore in the previous year’s equivalent quarter (Q1FY23), and its net profit increased by 250 percent to Rs 25 crore in Q1FY24, from Rs 7 crore in Q1FY23.
Ugro Capital Limited is a technology-focused small business lending platform. The company is focused on addressing the capital needs of small businesses.
Ujjivan Financial Services Ltd
With a market valuation of Rs 5,901 crores, the firm is classified as a small-cap stock. The company’s shares were trading at Rs 484.95 on Friday, down 0.87 percent from the previous close price.
Foreign institutional investors have increased their stake in the company by 9.33 percent,i.e., from 31.15 percent in Q4FY 22-23 to 40.48 percent in Q1 FY 23-24. And domestic institutional investors hold 3.86 percent of the firm.
The stock has gained 82 percent in the previous six months and a multibagger return of 168 percent in one year.
Ugro Capital reported a 36 percent increase in sales to Rs 1,375 crore in Q1FY24, compared to Rs 1,006 crore in the previous year’s equivalent quarter (Q1FY23), and its net profit increased to Rs 298 crore in Q1FY24, from Rs 295 crore in Q1FY23.
Ujjivan Financial Services is an NBFC-MFI under a Non-Banking Financial Company to serve economically active urban and semi-urban individuals.
Written by Omkar Chitnis
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