5 Penny Stocks Seeing Strong FII Buying. Take a Look...

After sulking on the sidelines for weeks, FIIs have come back with a bang, pumping nearly Rs 15,000 crore into Indian equities in just three sessions between April 15 and 17.

This isn't just a random bounce-it's one of the most aggressive buying sprees we've seen in a while. Clearly, foreign investors are warming up to India again, and the mood on Dalal Street is shifting.

What's bringing them back? Solid economic fundamentals, better-than-peers valuations, and a bit of global tailwind seem to be doing the trick.

And when FIIs buy, smart money usually follows.

So here are five penny stocks where FIIs were quietly loading up in Q4.

#1 Blue Pearl Agriventures

First on the list is Blue Pearl Agriventures.

The company has a technical and financial collaboration with E-Wha Foam Korea Co. It used to be in the business of manufacturing foam and other foam-based products. Currently, the company is in the business of textiles.

FII Stake in Blue Pearl Agriventures

Quarter	Dec-24	Mar-25
FII Stake (%)	0	23.2

Source: Equitymaster

According to the latest shareholding data of Blue Pearl Agriventures, FIIs bought a 23.2% stake in the company in the March 2025 quarter. Prior to this in the December quarter FIIs held no stake in the company.

One of the reasons for this can be its first-ever stock split. The company in March subdivided one equity share of Rs 10 each into ten equity shares of Re 1 each. The record date for this 1:10 split was set as 20 March 2025.

Another reason can be strong Q3 results. For the December 2024 quarter, the company reported a revenue of Rs 102.3 million (m), up from 0.4 m a year back. The net profit too came in at Rs 3.7 m.

Going forward, the company plans to improve their financial performance.

For more details, see the BLUE PEARL TEXSPIN company fact sheet and quarterly results.

#2 Bafna Pharma

Next on the list is Bafna Pharma.

The company manufactures over 336 licensed pharmaceutical formulations.

It has globally registered 78 of its products, including Afenac-p Tab, Afenac-th Tab, and finished solid and liquid oral dosage forms of Betalactam, Non-Betalactam, and Cephalosporin products.

FII Stake in Bafna Pharma

Quarter	Dec-24	Mar-25
FII Stake (%)	0	8.5

Source: Equitymaster

In the March 2025 quarter, FII bought an 8.5% stake in the company. In the December 2024 quarter FII held no stake in the company. This can be attributed to robust December quarter numbers.

For the December 2024 quarter, Bafna Pharma reported a 16.7% YoY rise in revenue to Rs 331.9m. This was against revenue of Rs 284.4 m reported a year back.

Meanwhile, the company reported a net profit of Rs 9.5 m. This was against the net loss of Rs 29.4 m a year back.

However, the promoters of the company have reduced their stake in the company to 75% against 88.3% in the December 2024 quarter.

Going forward, the company plans to expand its product portfolio.

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

#3 Moksh Ornaments

Next on the list is Moksh Ornaments.

The company is engaged in the manufacturing and wholesale of gold jewellery, including bangles, chains, and mangalsutras.

The design and production processes are outsourced to skilled artisans based in Kolkata and Mumbai on a job-work basis.

Its jewellery is primarily supplied to well-known retail brands across India, such as Nakshatra Jewellery, P.N. Gadgil Jewellers, Neelkanth Jewellers, and Ranka Jewellers.

Additionally, the company exports its products to the UAE. The key raw material, gold, is sourced from banks, bullion dealers, and other suppliers in the domestic market.

FII Stake in Moksh Ornaments

Quarter	Dec-24	Mar-25
FII Stake (%)	0	6.8

Source: Equitymaster

According to the latest bulk deal reported on the NSE, foreign investor Investi Global Opportunity Fund PCC has acquired 6.4 lakh equity shares in Moksh Ornaments, through an open market transaction valued at around Rs 7.87 m, at an average price of Rs 12.3 per share.

On the selling side, Pine Oak Global Fund divested nearly 6.45 lakh shares worth Rs 7.9 m, at the same price of Rs 12.3 per share.

In the December 2024 quarter, FII's stake in the company was nil.

This can be on the back of a recent order win. On 4 February 2025, the company bagged a Rs 1.2 billion (bn) order from Lalithaa Jewellery Mart for the supply of new gold ornaments of 22 Carats.

Additionally, Moksh Ornaments announced plans to introduce rose gold ornaments with lighter carats to serve new-generation customers and change consumer preferences.

Apart from this product change, it's also in the process of tapping new international markets.

However, promoters trimmed around 18% stake in the company in the March 2025 quarter to 36.9%.

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

#4 Reetech International

Next on the list is Reetech International.

The company used to be in the business of agricultural products like rice milling, rice sorting, dal milling, and processing. At present, it has shifted its focus to trading imported coal.

Its product portfolio includes coal imported from Indonesia, South Africa, and Australia, as well as domestic sources.

FII Stake in Reetech International

Quarter	Dec-24	Mar-25
FII Stake (%)	0	4.6

Source: Equitymaster

According to the March 2025 shareholding data of Reetech International, FIIs bought a 4.6% stake in the company. In the December 2024 quarter, the FIIs held no stake in the company.

This can be on the back of a robust sectoral outlook. The Indian government has initiated the National Critical Mineral Mission (NCMM) with a budget of Rs 180 bn in the 2025 budget. In addition, public sector undertakings are projected to invest another Rs 180 bn.

The NCMM will encompass various phases of the value chain, including mineral exploration, mining, and processing. The mission aims to accelerate the exploration of critical minerals both on land and in offshore regions of the country.

Although Reetech doesn't mine coal, it stands to benefit as a trader of imported coal and possibly other key minerals in the future.

#5 Sikko Industries

Last on the list is Sikko industries.

The company manufactures, trades and exports bio-agro chemicals, pesticides, fertilisers, seeds, sprayers, packaging, machinery, FMCG products, and more.

FII Stake in Sikko Industries

Quarter	Dec-24	Mar-25
FII Stake (%)	0.7	4.8

Source: Equitymaster

FII holdings have increased by 4.07%, rising from 0.7% in Q3 FY25 to 4.77% in Q4 FY25.

One of the likely reasons behind this surge is the boost agriculture-focused companies received in the Union Budget 2025-26.

Among key announcements was the setting up of a new urea plant in Assam, signalling continued government support for the fertilizer and agri-inputs space.

Another tailwind could be the forecast of an "above normal" monsoon this year, as per the India Meteorological Department (IMD).

A good monsoon typically leads to higher agricultural output, driving demand for agri-inputs and benefiting companies like Sikko.

Going forward, the company plans to improve its financials.

Conclusion

When foreign institutional investors (FIIs) begin buying into penny stocks, it naturally sparks curiosity among retail investors.

After all, FIIs are often considered smart money-they typically conduct in-depth research and have early insights into a company's potential.

Their entry into lesser-known stocks could hint at a possible turnaround, driven by improved financials, sectoral tailwinds, or favourable government policies. It can also enhance a stock's visibility and liquidity, which are usually lacking in the penny space.

However, it's important to remember that FII interest doesn't automatically make a penny stock a solid investment. These stocks are often volatile and lack transparency.

Many have limited financial history, low trading volumes, and are vulnerable to sharp price swings. Moreover, not all FII bets are long-term; some are speculative or momentum-driven plays.

So, while FII buying can be a useful signal, it should only be seen as a starting point. Investors must dig deeper into the company's fundamentals, track record, and future prospects before taking a position.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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