Double Booster: 5 Stocks Seeing Rising DII + FII Holdings

As investors gear up for yet another earnings season, the Indian equity markets are getting tense, and for good reason.

Tariffs, inflation, geopolitical risks - investors are tracking all of these factors closely.

One more thing that's getting attention these days is rising institutional holding in stocks. When institutional holdings in a stock begin to climb quarter after quarter, it's a signal worth watching.

The recent March 2025 shareholding data reveals a clear trend: rising stakes in select companies with solid fundamentals and scalable business models.

In this article, we spotlight five such stocks that are quietly adding to their institutional holdings. These companies have seen buying from FIIs as well as DIIs.

Let's take a closer look.

#1 Tips Music

First on the list is Tips Music, erstwhile Tips Industries.

In the most recent quarter, the company saw its FII holdings rise to 8.22% from 7.42%. Overall, FII holding has seen a stark increase from 0.4% in September 2023 to over 8% at present.

Established in 1996, Tips Music specializes in the production and distribution of motion pictures and the acquisition and exploitation of music rights. The company is a major producer of Punjabi films in India.

Over the past two decades, it has produced around 40 Hindi films and licenses out its theatrical, satellite, and other rights to distributors and broadcasters.

All of the company's revenue comes from licensing fees, with 75% derived from digital platforms, where YouTube contributes 45-50% and the rest comes from other platforms. The remaining 25% of revenue is generated through television and public performances.

Coming to its financials, for the first 9 months of FY25, TIPS reported a 30.2% revenue growth, fuelled by strong performance on digital platforms. EBITDA grew 32.1%, with margins increasing to 72.9% from 71.9% in 9MFY24.

Looking forward, the management is projecting another 30% revenue growth in the next financial year.

#2 Lloyds Metals & Energy

Lloyds Metals & Energy (LSIL) is a prominent player in the manufacturing of sponge iron, power generation, and mining activities.

As one of India's largest iron ore merchant miners, LSIL has secured a strong foothold in the mining and energy sector.

In the fourth quarter of FY25, the company saw its mutual fund holding rise to 1.7% from 1.5%. At the same time, FII holding also inched up to 2.1% from 1.9% in the previous quarter.

Over the years, the company has expanded its operations significantly. It owns a mining lease for over 350 hectares of iron ore at Surjagarh Village in Maharashtra, with a long-term lease valid until 2057.

LSIL is also actively investing in expanding its facilities. The company plans to increase its iron ore facility capacity to 55 MTPA and lay down an 85 km slurry pipeline, with 45 km already completed.

Additionally, the company is building a 360-kilotonne DRI plant to further enhance its capacity.

The financial performance of LSIL has been impressive. Over the last five years, the company's sales have grown at a compounded annual growth rate (CAGR) of 44.9%, to Rs 6,242 m in FY24.

This growth has been bolstered by strong sales over the last two years, with profits soaring at a CAGR of 94.4%, to Rs 798 m.

Despite the capital-intensive nature of its business, LSIL has maintained respectable return ratios, including an average return on equity (RoE) of 9.4% and return on capital employed (RoCE) of 13.6%.

In the third quarter of the current financial year, LSIL reported a profit growth of 17.4%, despite a 12% decline in total income compared to the previous year.

Looking ahead to FY30, the company has set ambitious goals to complete all its expansion plans and become debt-free.

Additionally, LSIL aims to increase the share of Value-Added Products (VAP) to 50% of its revenue, further enhancing its value proposition and profitability.

#3 Mazagon Dock

Third we have Mazagon Dock Shipbuilders.

In the fourth quarter of FY25, the company saw its DII holding rise to 1.34%. In fact, domestic mutual funds have increased their holding in this shipbuilding company for the past 7 quarters.

Interestingly, FIIs have also upped their stake in the company for the past 2 quarters, taking their current holding to 2.26%.

Mazagon Dock is among India's leading shipbuilding yards, specialising in constructing and repairing warships and submarines for the Ministry of Defence and commercial vessels.

It is the only Indian shipyard to have built destroyers and conventional submarines for the Navy.

Financially, the company's revenue has grown at a CAGR of 15.5% in the last five years while its net profit has grown at a CAGR of 29%.

The company's five-year average RoE and RoCE were 23.6% and 33.3%, respectively.

At present, Mazagon Dock's order book stands in excess of Rs 347.9 bn.

The company has a capex program of Rs 50 bn, planned over the next 4-5 years. The initial capex for FY26 is expected to be about Rs 5 bn.

Additionally, the management maintains optimism regarding future growth, citing no expected decline in revenues.

It also projects sustainable margins of 12-15% at profit before tax (PBT) level, reflecting industry standards.

#4 BSE Ltd

Next on the list is Bombay Stock Exchange (BSE).

BSE, in the March 2025 quarter, saw its mutual fund holdings go up to 10.2% from 9.7% in the previous quarter, marking the second consecutive quarter where MF holding has gone up.

During the same time, its FII holding has also gone up to 16.8% in the most recent quarter, the third consecutive quarter where FII holding has increased.

BSE is an Indian Stock Exchange located at Dalal Street in Mumbai. The company facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds.

The company provides a platform for trading in equity, debt, equity derivatives, currency derivatives, commodity derivatives, SME, SME startups, interest rate futures, and the e-agricultural spot market.

It also offers listing services for equity, debt securities, mutual funds, and commercial papers.

Coming to its recent financial performance, in the December 2024 quarter, BSE's sales and net profit doubled compared to the year ago period. In fact, BSE has been recording its highest-ever quarterly revenues every passing quarter this year.

BSE had an average daily turnover of Rs 68 bn for the quarter compared to Rs 66.4 bn a year ago. Its derivatives segment sustained its growth trajectory in the quarter with a daily premium turnover of Rs 87.6 bn against Rs 25.5 bn in the year-ago period.

The company is looking ahead with a clear strategy to grow its business across multiple segments.

It's well placed to ride the financialisation megatrend currently underway in India. A part of this trend is Indian households increasingly investing in the stock market.

As a higher percentage of India's financial savings moves from traditional savings like fixed deposits to stocks over the long term, BSE will be one of the main beneficiaries.

However, investors must factor in that a substantial portion of BSE's revenues is vulnerable to factors such as the amount of market trading activity and macro factors like investment yields.

#5 Navin Fluorine

Last on the list is Navin Fluorine Ltd.

In the fourth quarter of FY25, Navin Fluorine's mutual fund holding went up to 16.9%, marking the third consecutive quarter where fund managers added stake.

FII holding also climbed up, reaching 20.2% in March 2025, compared to 18.6% in December 2024.

Navin Fluorine is primary engaged in producing refrigeration gases, inorganic fluorides, specialty organofluorines, and also offers contract research and manufacturing services.

The company has been engaged in the specialty chemicals business for more than two decades. This division produces niche fluorine-based molecules that have downstream applications in crop science, pharma key starting materials, and industrial chemicals.

The company ventured into contract research and manufacturing services for global clients in 2010. It provides its services to key downstream clients in innovator pharma and life sciences and agrochemicals space

Coming to its financials, Navin Fluorine's sales and net profit have grown at a CAGR of 16% and 13%, in the past 5 years.

In the December 2024 quarter, the company reported earnings in line with estimates, while its net profit and EBITDA margin exceeded estimates for the quarter. The management said that they expect strong growth in the CDMO business in FY26.

Going forward, the company is taking on an AHF capex worth Rs 4.5 bn which is expected to be commissioned by early FY26.

The company is expected to launch a molecule in the first quarter of FY26, having already introduced one in March 2025.

Conclusion

The recent purchases by FIIs and DIIs in the above Indian stocks highlights their growing confidence in the country's economic resilience and long-term potential.

However, as individual investors one must ensure they do not blindly copy what the FIIs and DIIs are doing. Institutional investors have a high-risk appetite which may not align with retail investors' risk tolerance.

Before considering an investment, it's crucial to analyse the fundamentals, growth prospects, corporate governance, and valuations of these companies rather than simply following FII and DII activity.

Happy Investing.

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