Double Booster - 5 Midcap Stocks Seeing Rising DII + FII Holdings

In the ever-evolving landscape of the stock markets, mid-cap stocks offer a unique combination of growth potential and volatility.

Over the past year, a few mid-cap stocks have seen a significant uptick in interest from both Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs).

According to recent data, DIIs have increased their holdings in mid-cap stocks by approximately 12% over the past 6 months, while FIIs have similarly raised their stake by around 8%.

This growing institutional interest reflects a broader shift towards midcaps, as these stocks present an attractive risk-reward profile amid the ongoing market volatility.

Considering this, we applied a screener to identify the mid-cap stocks in which FIIs and DIIs have recently increased their stake.

Let's have a look at five such stocks, exploring why these investors are placing their bets on these companies.

#1 OneSource Specialty Pharma

First on this list is OneSource Specialty Pharma.

OneSource Specialty Pharma Ltd (OSSPL) is in the research, development, manufacture and commercialisation of biological drug products in various injectable formats.

It also offers end-to-end CDMO services across all phases of pre-clinical and clinical development and commercial supply of biologics.

OSSPL is a subsidiary of Strides Pharma Ltd.

It covers the entire Contract Development and Manufacturing Organisation (CDMO) value chain, from clinical development to technology transfer to commercial manufacturing and regulatory assistance.

In September 2023, the company was formed after the demerger of Strides Pharma Science's CDMO and Oral Soft Gelatin business, and Steri Science Specialties Pvt Ltd's CDMO injectables business into Stelis Biopharma Ltd.

In February 2024, Stelis Biopharma was renamed to OneSource Specialty Pharma.

The latest shareholding data for OneSource Specialty Pharma shows not only a significant increase in DII ownership from 12.6% in the December 2024 quarter to 18% in March 2025 but also an increase in FII ownership from 17.4% to 18.5%, during the same period.

Going forward, the management has given medium-term growth guidance of 25-30% CAGR, targeting US$ 400 million (m) in revenue over the next three to four years with earnings before interest, tax, depreciation and amortization (EBITDA) margin of 40%.

Additionally, there is a shift anticipated in the revenue streams from predominantly pre-approval (MSA) to commercial sales (CSA) in FY26.

The company plans to invest about US$ 100 m in capex over the next two to four years to expand capacities, particularly in drug-device combinations and injectable spaces.

OSSPL has a diversified customer base with contracts typically lasting between five to fifteen years, indicating stability and long-term partnerships.

The customers are typically engaged in a take-or-pay model, providing assurance of capacity utilisation.

To know more, check out OneSource Specialty Pharma's latest quarterly results.

#2 Azad Engineering

Second on this list is Azad Engineering.

Azad Engineering is a manufacturer of aerospace components and turbines and supplies its products to original equipment manufacturers (OEMs) in the aerospace, defense, energy, and oil and gas industries.

The latest shareholding data for Azad Engineering shows not only an increase in FII ownership from 9.9% in the December 2024 quarter to 14.2% in March 2025 but also an increase in DII ownership from 6.6% to 8.2%, during the same period.

Coming to the financials, the company's revenue has grown at a compounded average growth rate (CAGR) of 41.4% in the last three years while its net profit has grown at a CAGR of 63.1%.

The company's three-year average return on equity (RoE) and return on capital employed (RoCE) were 14.1% and 18%, respectively.

The company has two manufacturing facilities in the pipeline at Telangana, spread over an area of 95,000 sq mts and 75,000 sq mts, respectively. The expansion is expected to be completed by FY26.

Additionally, Azad Engineering has signed a memorandum of understanding (MoU) for expansion into Saudi Arabia, ensuring co-location with manufacturing footprint of key global OEMs.

Going forward, the company plans to expand into manufacture of higher-value products along the client value chain including advanced gas, steam, and nuclear turbines, landing gears, etc.

Azad Engineering is planning a significant capacity expansion to meet the increasing demand from its global clientele.

By FY27, the company aims to achieve a significant increase in its manufacturing capacity, targeting a top-line revenue of over Rs 25 billion (bn). This expansion is expected to be financed through internal accruals.

To know more, check out Azad Engineering's financial factsheet and latest quarterly results.

#3 RBL Bank

Next on this list is RBL Bank.

RBL Bank provides specialized services under five business verticals namely: corporate banking, commercial banking, branch and business banking, retail assets and treasury & financial markets operations.

As of 9MFY24, the bank had a capital adequacy ratio of 16.4%, net interest margin (NIM) of 5.5%, gross non-performing assets (NPA) of 3.12%, net NPA of 0.8%, and current account and savings account (CASA) ratio of 33.8%.

The latest shareholding data for RBL Bank shows not only a significant increase in DII ownership from 17.7% in the December 2024 quarter to 20.8% in March 2025 but also an increase in FII ownership from 13.4% to 14.4%, during the same period.

Coming to the financials, the company's revenue has grown at a CAGR of 14.2% in the last three years while its net profit has grown at a CAGR of 32%.

The company's three-year average RoE and RoCE were 4.8% and 5.8%, respectively.

Going forward, RBL Bank aims to grow its advances & deposits by 20%+ CAGR, grow granular deposits by 50%+, maintain average CASA growth of 1.2% p.a., increase touchpoints to 2,600 and double customer count to 26 m. It has set a target to achieve all these milestones by FY26.

To focus on risk management, RBL Bank has been cutting risk and increasing focus on recovery in unsecured lending, taking active steps to mitigate risks in both rural joint liability group (JLG) loans and urban credit cards, and has created contingent provisions of Rs 2.7 bn to address potential slippages.

The bank has no immediate plans for capital raise and is expected to comfortably support growth ambitions for the foreseeable future.

The management expressed confidence in the ability to navigate ongoing challenges, with expectations for improved asset quality and reduced slippage in Q1 FY26.

To know more, check out RBL Bank's financial factsheet and latest quarterly results.

#4 Aditya Vision

Fourth is Aditya Vision.

Aditya Vision is engaged in trading of electronic items and is a service oriented electronic retail chain in Bihar dealing in consumer durables of all kinds.

The company sells 10,000+ products ranging from digital gadgets like mobile phones, laptops, and tablets to entertainment solutions like televisions, sound bars, home theaters, etc. to home appliances like air conditioners, refrigerators, etc.

The latest shareholding data for Aditya Vision shows not only an increase in FII ownership from 13.8% in the December 2024 quarter to 16.6% in March 2025 but also an increase in DII ownership from 8.7% to 9.9%, during the same period.

The company's revenue has grown at a CAGR of 32.6% in the last three years while its net profit has grown at a CAGR of 55.6%.

The company's three-year average RoE and RoCE were 46.7% and 33.9%, respectively.

As of 9MFY25, Aditya Vision is operating 161 showrooms and it's confident about surpassing 200 stores by the end of FY26.

The company aims to grow at a revenue CAGR of 20-25% over the next three to five years.

It is progressing towards central Uttar Pradesh (UP) from eastern UP. The business is ready to scale beyond Bihar, Jharkhand & UP to adjoining states in the "Hindi Heartland" over the next three to five years based on the "Creeping Cluster Approach".

The "Creeping Cluster Approach" is a business expansion strategy where growth happens gradually and geographically - moving from a core region into adjacent or nearby areas in a step-by-step manner, rather than jumping to far-off markets.

Recently, Aditya Vision has noted a sluggish demand environment attributed to high inflation and interest rates.

The management expects gross margins to stabilise in upcoming quarters as inventory levels normalise. Going forward, the management indicated a sustainable EBITDA margin guidance of around 8-10%.

The company does not plan to introduce private label products, focusing instead on established brands.

To know more, check out Aditya Vision's financial factsheet and latest quarterly results.

#5 Shaily Engineering Plastics (SEP)

Last on this list is Shaily Engineering Plastics.

The company is engaged in the manufacture and sale of injection molded precision plastic components, sub-assemblies for various requirements of OEM.

It also offers secondary operations in plastics like vacuum metalising, hot stamping, and ultrasonic welding.

SEP operates 7 manufacturing facilities in Gujarat-6 for plastic components and 1 for steel furniture & healthcare segment.

The latest shareholding data for Shaily Engineering Plastics shows not only an increase in DII ownership from 11.7% in the December 2024 quarter to 13.7% in March 2025 but also an increase in FII ownership from 5.4% to 7.4%, during the same period.

The company's revenue has grown at a CAGR of 19.5% in the last three years while its net profit has grown at a CAGR of 17.9%.

The company's three-year average RoE and RoCE were 9.8% and 11.9%, respectively.

In FY25, SEP recorded utilisation of 45% and it targets reaching 80% utilisation in two to three years.

The company's medical device business is expected to contribute approximately 30% of total revenue over the next three years.

Recently, SEP incorporated Shaily Innovations FZCO as a wholly owned subsidiary in Dubai to enhance global market reach.

Going forward, its expansion plans include contract manufacturing of medical devices and products featuring proprietary intellectual property.

The company is focused on expanding capacity for GLP-1 pen and auto-injector products, with a roadmap to enhance capacity from 35 m to 100 m over three to five years.

SEP's strategic focus on IP-led platforms and expanding global reach is expected to enhance organizational value significantly.

To know more, check out Shaily Engineering Plastics' financial factsheet and latest quarterly results.

Conclusion

As we've seen, the rising stakes from both DIIs and FIIs in these mid-cap stocks suggest a growing belief in their potential to deliver strong returns in the coming months.

According to recent data from the National Stock Exchange (NSE), midcap indices like the Nifty Midcap 100 have outperformed the broader market, with a year-to-date (YTD) return of over 15%, compared to the Nifty 50's return of around 8%.

This trend further reinforces the bullish sentiment among institutional investors, who are increasingly seeing midcaps as offering a strong growth trajectory in a recovering economy.

For retail investors, this rising institutional interest presents a valuable opportunity, but it also emphasises the importance of monitoring market trends and exercising caution.

While mid-cap stocks have the potential for higher returns, they also come with increased volatility.

As we move into the next quarter, these stocks will be under the spotlight, and those who keep a close eye on institutional movements might be well-positioned to benefit from this ongoing market shift.

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.

Happy Investing.

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