In this Blog, we will look at Highest FII Holding Stocks in India. FIIs do a lot of research and these stocks have been in their holding from a long period.
What are FIIs and what does it mean by FIIs Stock Pick:
FII (Foreign Institutional Investors) are companies established outside India which invest in Indian financial markets.
FII’s helps in the process of economic development by providing riskier, long-term capital to companies for growth. Their presence improves efficiency of the stock market and maintains the balance between stock price and its value.
FIIs are very nimble-footed and make their decisions very fast, this quality helps them to spot outperformers (quality fundamental stocks) very quickly but the pitfall is they are equally quick in selling the stock.
Although the current pandemic crisis has resulted in FIIs selling heavily, stocks in which high FII holding remain have outperformed their peers and even had positive returns on a long term basis.
- 5Y Avg. RoE – The stocks with more than 20% of Average Return on Equity for the past 5 years.
- 5Y Avg. EBITDA Margin – The stocks with more than 12% of Average EBITDA Margin for the past 5 years.
- QoQ increase in FII Holding – The stocks which are bought more than 1% by the FIIs (Foreign Institutional Investors) in the QoQ (Quarter on Quarter) Timeframe.
Top 10 Highest FII Holding Stocks in India:
- Clean Science and Tech. Ltd – The company manufactures functionally critical Speciality Chemicals, Pharmaceutical Intermediates, and FMCG Chemicals. The differentiation in the process manufacturing between Clean science and peers assisted the company to offer products at a competitive price and thereby helped it gain meaningful market share across its product portfolio.
- KNR Constructions Ltd – KNRCL was incorporated in 1995 and provides EPC services, primarily for the roads and highways segment. During the month of March 2021, the company won two new HAM projects with Bid Project Cost (BPC) of Rs.4500 crores and one new HAM Project with BPC of Rs.1041 crores in June 2021.
- Eicher Motors Ltd – Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry, and the global leader in middleweight motorcycles. It is the owner of the iconic Royal Enfield brand which is focused on mid-sized motorcycles (250-750 cc).
- CAMS Ltd – Computer Age Management Services (CAMS) is India’s largest registrar & transfer agent (RTA) of mutual funds with 70% market share of MF AUM. This company maintains a zero-debt position for more than a decade.
- Mindtree Ltd – Mindtree is a global technology consulting and services company, helping enterprises marry scale with agility to achieve competitive advantage. Mindtree applies its deep domain knowledge to 290+ enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster.
- Crompton Greaves Consumer Electricals Ltd – The company is one of the leading consumer companies in India with a 75+ years old brand legacy. The company’s products are present in approximately 60% of the electrical goods stores in India. It is targeting rural channels with towns with populations of 50,000 to 1,00,000 through a focused approach.
- Hindustan Aeronautics Ltd – The company manufactures aircraft under licenses such as the MiG-21, MiG-27, Jaguar, etc., and helicopters such as the Cheetah and Chetak. Further, the company has recently secured its largest-ever contract of 83 LCA Tejas Mk1A aircraft with MoD for Rs.36,486crs which further demonstrates its strong position in the defense avionics sector.
- Alkyl Amines Chemicals Ltd – The Company is in the business of manufacturing and marketing various aliphatic amines, amine derivatives, and other specialty chemicals for the last 30 years. It has
three manufacturing sites with 12 production plants and related utilities at Patalganga and Kurkumbh in Maharashtra and Dahej in Gujarat.
- Petronet LNG Ltd – Petronet LNG is India’s leading play in the import of LNG in the country and will be a beneficiary of the government’s aim to increase the share of natural gas in the energy basket to 15% over the long term. It has delivered 28% dividend growth per year on avg. over the past 10 years.
- Bharat Dynamics Ltd – Bharat Dynamics (BDL), is a Government of India Enterprise. It is engaged in the manufacturing of guided missiles and allied defense equipment.
Hope you liked this list of Highest FII Holding Stocks in India, do read our other article on “Top 10 Debt Free Companies in India“