10 Stocks That Saw Strong FII Buying in Q3. Should You Follow the Big Money?

Foreign portfolio investors (FPIs) offloaded Indian equities worth over Rs 780 billion (bn) in January 2025, extending their aggressive selling streak after a brief pause in December 2024.

The selling pressure has continued into February 2025, with outflows amounting to Rs 73.4 bn as of 10 February, according to data from the National Securities Depository (NSDL).

Unlike the mixed trends observed in November and December 2024, January witnessed consistent selling, with FIIs exiting stocks in 22 out of 23 trading sessions.

However, the temporary pause in December sparked fresh buying in select stocks, fuelling a rally in these counters.

Here's a look at 10 stocks where FIIs increased their stake in the December 2024 quarter.

#1 Greaves Cotton

First on the list is Greaves Cotton.

Greaves Cotton manufactures internal combustion engines, power generation equipment, and power transmission systems.

It manufactures cleantech powertrain solutions for CNG, petrol, diesel engines, gensets, farm equipment, e-mobility, and aftermarket services.

The latest shareholding data for Greaves Cotton shows a significant increase in FII ownership, rising from 1% in the September 2024 quarter to 2.4% in December 2024.

Meanwhile, Vijay Kedia acquired 1.2 million shares of Greaves Cotton through a bulk deal on 9 December 2024. This comes after Greaves Cotton's board approved the initial public offering (IPO) of its subsidiary, Greaves Electric Mobility, on 1 December 2024.

Greaves Electric Mobility, a key player in India's electric vehicle sector for over 16 years, designs and manufactures electric vehicles focused on affordable, sustainable, and smart mobility solutions. The upcoming IPO will feature a fresh equity share issuance alongside an offer for sale from existing shareholders.

Greaves Cotton's strategic shift from a diesel engine manufacturer to a fuel-agnostic mobility solutions provider may have attracted FII interest.

The company has set an ambitious target of achieving Rs 150 billion in revenue by 2030, fuelled by organic growth and strategic acquisitions.

Additionally, Greaves Cotton's lending subsidiary, Evfin, aims to finance 500,000 electric two-wheelers over the next five years, a significant increase from its current 12,000-unit portfolio.

For more details, see the Greaves Cotton company fact sheet and quarterly results.

#2 Shaily Engineering

Next on the list is Shaily Engineering.

The company is engaged in the manufacturing of plastic products. It specialises in manufacturing plastic components from high-performance and ultra-high-performance polymers.

It processes a wide range of commodity polymers in large volumes and offers technological solutions for patient-centric and self-medication injection systems. Its portfolio includes drug delivery devices, pen injections, auto-injectors, dry powder inhalers, and more.

The most recent shareholding data for Shaily Engineering shows a rise in FII stake, increasing from 3.1% in the September 2024 quarter to 5.4% in the December 2024 quarter, marking a growth of 2.3%.

This can be as Shailly stands out as one of the few global manufacturers of insulin pens and has expanded its offerings by developing its own intellectual property (IP) devices.

This high-entry barrier segment sees low competition due to stringent regulatory approval processes.

Shailly has been increasing its capacity in the healthcare segment, aiming to raise its contribution to revenue to 25% by FY27 from the current 18.6%.

By focusing on IP-backed injection pens, the company is positioned for strong revenue growth, improved margins, and resilience to recession risks. Notably, Shailly Engineering was among the multibagger stocks of 2024, with a remarkable rally of up to 400%.

For more details, see the Shaily Engineering company fact sheet and quarterly results.

#3 Borosil Renewables

Next on the list is Borosil Renewables.

The company is India's only manufacturer of solar glass, playing a pivotal role in the green energy supply chain. The company is known for producing high-quality, toughened glass for solar photovoltaic panels, catering to both domestic and international markets.

Their products adhere to international standards and are customized to meet customer-specific requirements.

Additionally, Borosil offers innovative solutions like anti-glare and anti-soiling coatings, which help improve the efficiency and lifespan of solar installations.

The latest shareholding data shows a significant increase in FII stake, rising from 4.2% in the September 2024 quarter to 5.4% in the December 2024 quarter, marking an increase of 1.2%.

This uptick in FII investment can be attributed to the recent announcement of an anti-dumping duty by the Ministry of Finance on imports of textured tempered coated and uncoated glass from China and Vietnam.

The duty, effective from 4 December 2024 for six months, is aimed at protecting domestic manufacturers, including Borosil Renewables, from the impact of cheaper imports. This move presents a significant advantage for the company as the sole domestic manufacturer of solar glass.

Currently, Borosil holds a 40% share of the domestic market, serving over 400 customers and exporting products to the USA, Turkey, and Europe.

To further capitalize on the growing demand, the company announced in January 2025 a 50% expansion of its solar glass manufacturing capacity, from 1,000 tons per day to 1,500 tons per day.

This expansion positions Borosil Renewables to capture a larger share of the market while enhancing its role in the renewable energy sector.

For more details, see the Borosil Renewables company fact sheet and quarterly results.

#4 EID Parry

Next on the list is EID Parry.

The company, a prominent player in India's agribusiness and chemicals sector, is part of the Murugappa Group, one of the most respected conglomerates in the country.

The company operates primarily in two segments: sugar and nutraceuticals. It has a significant market share in the Indian sugar industry, producing sugar, ethanol, and power, which are key revenue drivers.

The company operates in two primary segments: sugar and nutraceuticals, holding a strong market share in the Indian sugar industry. EID Parry manufactures sugar, ethanol, and power, which contribute significantly to its revenue.

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According to the latest shareholding data, FIIs increased their stake in the company by 1.9%, raising their holding from 10.7% in the September 2024 quarter to 12.6%.

This rise in FII interest could be attributed to the company's strategic diversification into the food and nutrition segment, with the launch of branded staples like rice, millets, and pulses. This move aims to reduce dependence on the cyclical sugar business and tap into the growing demand for packaged and healthy food products.

Additionally, EID Parry is focusing on expanding its retail presence through branded sweeteners and packaged foods, which should enhance margins and broaden its consumer base. With an expanded distribution network that now reaches over 110,000 storefronts nationwide, the company is well-positioned for future growth.

Looking ahead, EID Parry expects a significant rise in ethanol revenues, both in absolute terms and as a proportion of overall revenues, aligning with India's growing ethanol blending mandate.

For more details, see the EID Parry company fact sheet and quarterly results.

#5 Brigade Enterprises

Next on the list is Brigade Enterprises.

A leading real estate developer in India, Brigade Enterprises has established a strong presence across residential, commercial, and hospitality sectors.

The company is well-known for its high-quality, innovative properties and operates primarily in South India, with a significant focus on Bangalore, where it has developed some of the city's most iconic projects.

According to the December 2024 shareholding pattern, FIIs increased their stake in the company from 18.5% in the September 2024 quarter to 20.3% in the December 2024 quarter, marking an uptick of 1.8%. This rise can be attributed to Brigade Enterprises' recent efforts to expand its portfolio and its commitment to sustainability.

In December 2024, the company launched India's first net-zero residential project, Brigade Citrine, in Bengaluru. The project is valued at around Rs 500 crore and covers 4.3 acres, consisting of 420 residential units.

The high-rise township in Budigere Cross, Whitefield, is designed to save approximately 8,900 tankers of water annually and utilize renewable energy for all common area lighting. This project aligns with Brigade Enterprises' goal of achieving net-zero emissions by 2045.

The company has also seen strong sales performance, with nearly 50% of its sales driven by about 5-6 new launches in the first half of the fiscal year. Brigade Enterprises is expanding its footprint with new projects in Hyderabad, Chennai, and Bengaluru in the latter half of FY25.

The company also has an upcoming launch pipeline of around 12 million square feet in Chennai, with a focus on the mid-segment, further driving growth prospects.

For more details, see the Brigade Enterprises company fact sheet and quarterly results.

#6 Torrent Pharma

Next on the list is Torrent Pharma.

Torrent Pharmaceuticals is a prominent Indian pharmaceutical company, recognized for its wide array of products across various therapeutic areas, including cardiovascular, central nervous system (CNS), gastrointestinal, and diabetes care, among others.

The company offers a diverse portfolio comprising prescription-based drugs, over-the-counter products, and active pharmaceutical ingredients (APIs).

According to the latest shareholding data, FIIs increased their stake in Torrent Pharma from 14.5% in the September 2024 quarter to 16.2% in the December 2024 quarter, reflecting a growth of 1.7%.

This rise in FII holdings can be attributed to the company's recent strategic acquisitions. Torrent Pharma acquired three brands from Germany's Boehringer Ingelheim GmbH, with the deal expected to be completed by March 2025.

Torrent has already been marketing these brands under a co-marketing agreement with Boehringer Ingelheim India, and the acquisition will further strengthen its portfolio. One of the key products, Empagliflozin, is a novel SGLT-2 inhibitor for glycemic control in type 2 diabetes patients.

Looking ahead, Torrent Pharmaceuticals plans to launch 5-7 products in the U.S. market in FY26, which is expected to contribute to a 10-15% revenue growth.

For more details, see the Torrent Pharma company fact sheet and quarterly results.

#7 Kalpataru Projects

Next in the list is Kalpataru Projects.

Kalpataru Projects International Ltd. (KPIL), formerly known as Kalpataru Power Transmission Ltd., is a prominent player in the global power transmission and infrastructure sector.

The company specializes in engineering, procurement, and construction (EPC) for power transmission and distribution networks, oil and gas pipelines, railways, and civil infrastructure projects.

KPIL is well-regarded for successfully executing complex projects in both domestic and international markets, contributing to the development and maintenance of critical infrastructure systems.

According to the latest shareholding data, FII increased their stake in Kalpataru Projects from 10.7% in the September 2024 quarter to 12.4% in the December 2024 quarter, marking a growth of 1.7%.

This increase in FII stake can be attributed to the company's recent order wins. Kalpataru Projects secured new orders worth Rs 22.7 bn, including transmission and distribution (T&D) projects in both domestic and international markets, as well as residential building projects in India.

Additionally, in December 2024, the company announced securing new orders valued at Rs 10.1 bn, alongside its international subsidiaries.

Looking ahead, Kalpataru Projects plans to further expand its reach, continuing to leverage its strong track record and diversified project portfolio.

For more details, see the Kalpataru Projects International company fact sheet and quarterly results.

#8 KEC International

Next on the list is KEC International.

The company is a key player in the engineering, procurement, and construction (EPC) sector under the RPG Group, operates across multiple infrastructure segments, including power transmission and distribution, railways, civil, urban infrastructure, solar, smart infrastructure, oil and gas pipelines, and cables.

The company has a strong global presence, with manufacturing facilities in India, Dubai, Brazil, and Mexico, enabling an extensive supply chain that spans six continents and over 105 countries.

According to the latest shareholding data, FIIs increased their stake in KEC International from 13.6% in the September 2024 quarter to 15.2% in the December 2024 quarter, reflecting a rise of 1.6%.

This uptick is likely linked to the company's recent order wins. In December 2024, KEC secured multiple orders worth Rs 10.4 bn in its Transmission and Distribution (T&D) segment across international markets.

These include the supply of towers, hardware, and poles for projects in the Americas, along with a 220 kV transmission line project in the Commonwealth of Independent States (CIS) region. The CIS order further strengthens KEC's foothold in the region and enhances its international T&D order book.

Looking ahead, the company anticipates exceeding its FY25 order inflow guidance of Rs 250 bn, supported by a strong tender pipeline valued at Rs 1.5 trillion (tn).

For more details, see the KEC International company fact sheet and quarterly results.

#9 Atul

Next on the list is Atul.

Atul has grown into one of India's leading chemical companies with a strong global footprint.

The company's speciality chemicals division spans agrochemicals, pharmaceuticals, polymers, dyes, and intermediates, serving industries such as textiles, automotive, healthcare, and consumer goods.

Known for its high-quality standards and advanced technology, Atul continues to strengthen its market presence across various sectors.

As per the latest shareholding data, FIIs have increased their stake in Atul from 9.7% in the September 2024 quarter to 11.2% in the December 2024 quarter, marking a rise of 1.5%. This increase is likely driven by the company's robust Q2 performance.

Revenue surged 16.7% year-on-year (YoY) to Rs 13.9 n, up from Rs 11.9 bn in the previous year. Meanwhile, net profit saw a significant jump of 50.6% YoY, reaching Rs 1.4 Bn from Rs 0.9 bn.

Looking ahead, Atul aims to expand its production capacity to capitalize on growing demand and sustain its growth momentum.

For more details, see the Atul company fact sheet and quarterly results.

#10 Action Construction Equipment (ACE)

Last on the list is Action Construction Equipment.

The company is India's leading material handling and construction equipment manufacturing company.

It is known for producing world-class mobile cranes, backhoe loaders, forklifts, and agricultural machinery,

It's India's largest producer of pick-and-carry cranes. It has a majority market share in both the mobile cranes and the tower cranes segments.

According to the latest shareholding data, FIIs increased their stake in Action Construction Equipment from 10.5% in the September 2024 quarter to 11.9% in the December 2024 quarter, marking a rise of 1.4%. This uptick likely reflects optimism around the company's growth trajectory.

Executive Director Sorab Agarwal had expressed confidence in achieving a 15% topline growth in FY25, citing a stronger outlook for the second half of the fiscal year.

At the start of FY25, ACE had projected revenue growth of 15-20%, which remains on track given the improving demand environment.

For more details, see the Action Construction company fact sheet and quarterly results.

Snapshot of Stocks Recently Bought by FIIs

Here's a quick overview of some more companies that have seen FII buying in recent months -

Conclusion

Investing in stocks that Foreign Institutional Investors (FIIs) are buying can offer several advantages. FII interest often signals confidence in a company's growth prospects, especially since they tend to invest in strong, well-established firms.

Additionally, their buying activity can increase liquidity and may drive stock prices higher. FIIs typically focus on market leaders, indicating potential for long-term growth.

However, there are risks involved. FIIs can have shorter investment horizons, meaning they might exit quickly if market conditions change, leading to volatility.

Relying solely on FII activity without conducting your own research can be risky, as their investment decisions may be driven by broader market trends rather than company-specific fundamentals.

Which is why investors should conduct thorough research, do corporate governance checks, consider regulatory risks, policy shifts, and execution challenges before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...