Penny Stocks With High FII Holdings: Investors are always on the lookout for penny stocks which can become a multi-bagger. However, because of their small size, it is inherently risky to invest in penny stocks.

To counter the risk, investors can put to use strong criteria that can help to screen stronger companies. One such parameter is high FII holding as it serves as a vote of confidence that foreign institutions have faith in the stock. Thus, in this article, we’ll present you with such Penny Stocks With High FII Holdings that you can add to your watchlists.

Penny Stocks With High FII Holdings

For our study of ‘high FII holding penny stocks’ we will study companies from various sectors such as financial services, textiles, chemicals, etc. We’ll read about their businesses, scale of operations and key financial metrics. So without further ado, let us jump in.

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Penny Stocks With High FII Holdings #1 – Winsome Textile Industries

High FII Holding Penny Stocks - Winsome Textile Logo
ParticularsAmountParticularsAmount
CMP ₹64Market Cap (Cr.)₹127
EPS (TTM)₹9.5Stock P/E (TTM)6.79
RoE9.6%RoCE17.3%
Promoter Holding55.7%FII Holding32.0%
Debt to Equity1.1Price to Book Value0.50
Operating Profit Margin8.4%Net Profit Margin2.8%

Founded in 1980, Winsome Textile Industries is a leading manufacturer of melange, dyed and specialty yarns company with a global footprint. It has built partnerships with more than 250 clients from more than 50 countries and over 600+ clients within India.

It has a production capacity of 1,06,00 spindles, a dying capacity of 33 tons per day, and a yarn-dyed knitted fabric capacity of 7 tons per day. Furthermore, it has also invested in hydropower generation in recent years establishing itself as an integrated player.

Talking about its product portfolio, Winsome produces sparkle yarn, dyed yarn, raw white yarn, neps yarn, wool touch yarn, knitted yarn, and more.

It earned a net profit of Rs 24 crore on sales of Rs 876 crore in FY23. Winsome stock currently trades at a price of Rs 64 per share giving it a market capitalisation of Rs 127 crore. This makes it a penny stock with a high FII shareholding of 32.04%, jointly held by various international funds.

Penny Stocks With High FII Holdings #2 – DU Digital Global

DU Digital Global Logo
ParticularsAmountParticularsAmount
CMP ₹59Market Cap (Cr.)₹301.88
EPS (TTM)₹0.0Stock P/E (TTM)NA
RoE2.6%RoCE6.1%
Promoter Holding65.9%FII Holding16.1%
Debt to Equity0.0Price to Book Value14.31
Operating Profit Margin6.4%Net Profit Margin2.4%

DU Digital Global is a micro-cap services provider in the domain of administrative and non-judgmental tasks to cognate to visa, passport, individual identity management and other various citizen services.

It has a diversified international presence with its 35 centres in more than 35 nations across the world. Furthermore, it has an added reach of 1,300 centres through its partner offices. The huge network has allowed it to successfully process more than 5 million applications to date.

DU Digital Global provides location-independent document processing, passport & consular services, eVisa solutions, identity services, public services, migration services, digital locker, tourism & trade support for client governments, and mobile biometrics solutioning.

The penny stock which has a high FII holding of 16.1% earned a net profit of Rs 66.73 lakh on the sales of Rs 37.28 crore in FY23. With a high FII holding, the identity services provider company also has a high promoter shareholding of 65.9%.

DU Digital Global is debt-free and currently has a micro-cap valuation of Rs 316 crore.

Penny Stocks With High FII Holdings #3 – Orient Ceratech

High FII Holding Penny Stocks - Orient Ceratech Logo
ParticularsAmountParticularsAmount
CMP ₹32Market Cap (Cr.)₹382
EPS (TTM)₹1.2Stock P/E (TTM)26.19
RoE5.5%RoCE7.7%
Promoter Holding63.6%FII Holding13.2%
Debt to Equity0.1Price to Book Value1.47
Operating Profit Margin7.2%Net Profit Margin4.7%

An Ashapura Group enterprise, Orient Ceratech is the largest calcined and fused products manufacturer in India. It was established close to five decades ago in 1974 and has evolved into a prominent supplier of industrial materials.

It processes a wide range of materials such as alumina (calcined bauxite, brown fused, white fused, pink fused, white fused mullite, and zirconia), monolithics (castables and refractory motors), and ceramic proppants (intermediate and high strength).

These products find their applications as intermediate and raw materials in a broad range of industries including cement, refractory production, grinding, and more. 

The present installed capacity of Orient Ceratech is 21,000 MT and 74,250 MT for fused aluminium oxide grains and calcined products respectively. Furthermore, the company is working towards expanding fused aluminium grains production capacity and installing a lignite-based power plant.

Orient Ceratech earned a net profit of Rs 14 crore on sales of Rs 302 crore in FY23. The industrial materials maker has a high promoter holding and FII holding of 63.6% and 13.2%.

Penny Stocks With High FII Holdings #4 – Dhanlaxmi Bank

Dhanlaxmi Bank Logo
ParticularsAmountParticularsAmount
CMP ₹24Market Cap (Cr.)₹609
EPS (TTM)₹4.1Stock P/E (TTM)₹5.9
RoE5.1%RoCE0.8%
Promoter Holding0.0%FII Holding11.0%
Net NPA1.16%Price to Book Value0.64
Net Interest Margin3.6%Provision Coverage Ratio90.6%

One of the oldest banks in India, Dhanlaxmi Bank was established close to a century ago in 1927 in the state of Kerala, India. Since then, it has built a strong foothold in the southern states of India.

The bank provides a multitude of banking and financial services under personal banking, corporate banking, NRI banking, micro & agri banking, SME and forex & trade finance. Its portfolio of products and services includes debit & credit cards, current & savings accounts, personal loans, mortgage loans, vehicle loans, export & import services, agriculture loans, and more.

The bank operates through a network of 255 branches and 274 ATMs. It is publicly held and has zero promoter shareholding. Although, the micro-cap bank has a high FII holding of 10.97%. 

Dhanlaxmi Bank reported a significant improvement in its GNPA and NNPA with the figures improving year on year to 5.19% and 1.16% in FY23 respectively. Furthermore, its provision coverage ratio increased from 80.64% last year to 90.61%.

It earned a net interest income of Rs 362.31 crore in FY23 with a net interest margin of 3.60%. Its gross advances and deposits recorded a year-on-year growth of 16.70% and 7.65% to become Rs 9,854 crore and Rs 13,352 crore

Penny Stocks With High FII Holdings #5 – Vikas Ecotech

Vikas Ecotech Logo
ParticularsAmountParticularsAmount
CMP ₹2.9Market Cap (Cr.)₹334.86
EPS (TTM)₹0.1Stock P/E (TTM)32.22
RoE4.0%RoCE8.9%
Promoter Holding7.9%FII Holding15.2%
Debt to Equity0.3Price to Book Value1.31
Operating Profit Margin5.2%Net Profit Margin2.4%

Vikas Ecotech was set up in 1984 and has emerged as a preferred supplier of high-end specialty chemicals over the last 4 decades. It manufactures a wide range of rubber-plastic compounds and additives.

Its products are used as intermediates for further processing in multiple industries such as agriculture, automobiles, cables, electricals, hygiene, healthcare, polymers, packaging, textiles, and footwear.

Broadly, Vikas Ecotech has four product lines: polymer compounds, organotin stabilizers, plasticizers, and flame retardants. Its operations are backed by research & development facilities and production facilities located across Rajasthan and Jammu. It has an upcoming facility in Gujarat.

The chemicals maker recorded sales and net profit of Rs 402 crore and Rs 9 crore in FY23 respectively. Its stock trades at a P/E ratio of 32.22. Talking about its shareholding potter, it has a high FII holding of 15.2% but a low promoter holding of 7.9%.

List Of Penny Stocks With High FII Holdings

The list below puts together high FII holding penny stocks in India.

Company NameCMPMarket Cap (Cr)FII Holding Industry
Winsome Textile Industries₹61.7₹12232.0%Textiles
DU DIgital Global₹52.0₹30216.1%Visa Processing
Orient Ceratech₹32.3₹38913.2%Aluminium
Dhanlaxmi Bank₹24.1₹60911.0%Banking
Celebrity Fashions₹20.1₹9420.1%Textiles
Vikas Ecotech₹3.0₹334.86 16.1%Chemicals

Conclusion

As we conclude our study of ‘Penny Stocks With High FII Holdings’ we can say that penny stocks favoured by FIIs usually have a focused business model with a strong track record of project execution. However, retail investors should approach penny stocks with extreme caution. They can be pump-and-dump schemes, sudden sales degrowth, weak business models, and various other risks.

Do you think penny stocks can lead to quick riches in the stock market? Have you held any multi-bagger penny stock in your portfolio? How about we continue this conversation in the comments below?

Written By Vikalp Mishra

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.


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