Penny Stocks Bought by FIIs: 5 That Caught Foreign Investors' Attention

#2 South Indian Bank

Next on our list is South Indian Bank's stock.

South Indian Bank is a private sector bank headquartered in Thrissur, Kerala, India. Established in 1929, it offers a range of banking products and services, including personal banking, corporate banking, and treasury services.

The bank has a significant presence in South India and has expanded its operations to other regions, providing services through a network of branches and ATMs.

An interesting trend is that FIIs have increased their holdings in the bank steadily over the last four quarters. In fact, between 31 December 2025, and 31 March 2025, the jump in holdings is commendable, with an increase by 3.27%.

Moving ahead, on the financial front, FY26 saw total business for the bank grow by 15% to Rs 2,236.2 billion (bn). The bank was able to show a healthy growth in the average advances during the period with a growth of 14%.

South Indian Bank also declared its highest-ever net profit at Rs 14.55 bn for the financial year 2025-2026, representing a 12% increase from Rs 13.03 bn in the prior year.

Total deposits grew by 15% to Rs 1,233.46 bn.

Overall gross NPA reduced by 177 basis points from 3.2% to 1.43%. Net NPA reduced by 63 basis points from 0.92% to 0.29%. The year's slippage ratio was 72 basis points.

In a recent earnings presentation, management said the institution's focus remains on portfolio quality. They noted that the SMA1 and SMA2 numbers continued to improve, while slippage is at an all-time low.

Significant improvement in processes and systems have also been realized at South Indian Bank. The focus on digital channels is helping South Indian Bank to improve its business and operating efficiency. This is the second year in which the bank has delivered positive operating leverage.

Moving ahead, the bank's management has said it is branching out from corporate into retail and MSME. The bank is also making efforts to broaden its fee-based income. According to them, these efforts should bear fruit in the coming years.

To know more check the South Indian Bank fact sheet and latest quarterly results.

#3 Suzlon Energy

Suzlon is one of the leading global renewable energy solution providers. The company is a leader in the wind energy space. Suzlon has, over the years, transitioned into a scaled, profitable, and strong market leader in the wind energy sector.

FIIs have gradually hiked their stake in Suzlon Energy, though, there has been no substantial jump over the last few quarters.

On the financial front, in Q4 FY26, Suzlon Energy delivered 830 megawatt, the highest-ever India deliveries for any quarter, with all financial parameters showing a strong uptrend.

The company reported consolidated revenue of Rs 54.68 bn in Q4 FY26, with EBITDA of Rs 9.64 bn, up 39% year on year, and net profit of Rs 11.14 bn. For the full year FY26, deliveries grew 58% to 2,456 megawatts.

The balance sheet as of March 26 reflects a net cash balance of Rs 23.84 bn, enhancing Suzlon Energy's financial flexibility.

In FY26, Suzlon transitioned into a scaled, profitable, and financially strong market leader in the wind sector. Suzlon delivered a record 830 megawatts in Q4 and 2,456 megawatts in FY26, which is the ever-highest deliveries in India.

Moving ahead, according to management, the focus is now on expanding its EPC offering, which has grown from 20% to 28% in H2 FY26, enhancing its competitive edge and further accelerating order book growth.

The S144 order intake has reached close to 9 gigawatts. The company sees this as a strong endorsement of its advanced technology.

In terms of commissioning, Suzlon Energy achieved ramp-up momentum with 332 megawatts in quarter 4, and this trend, according to management, is expected to continue in FY27.

Overall, Suzlon Energy is well-positioned in India's growing renewable energy push, backed by a strong order book, improving profitability, and a healthier balance sheet after its turnaround.

Rising demand for wind power, hybrid renewable projects, and supportive government policies provide long-term growth opportunities.

To know more, check the Suzlon Energy fact sheet and latest quarterly results.

#4 PC Jeweller

Next on our list is the stock of PC Jeweller.

PC Jeweller is one of the leading players in the jewellery industry and among the top players in studded jewellery. The company has a significant presence in North India.

The jump in FII stake in PC Jeweller has been significant, particularly in the quarter ending 31 March 2026.

The biggest story in PC Jeweller in the last few quarters has been efforts in debt reduction. The company has successfully reduced its outstanding bank debt under the terms of the Joint Settlement Agreement by approximately 24% during Q1 FY27.

With this reduction, PC Jeweller has now reduced its outstanding debt by more than 90% as on date, since the execution of the Settlement Agreement with banks on 30 September 2024.

The repayment of remaining outstanding debt and attaining a debt-free status in the ongoing quarter itself is expected to improve the company's financial position in the coming period.

In early July, like many companies, PC Jeweller also provided a business update. According to the same, Q1 FY27 consolidated revenue grew by approximately 21% YoY, reflecting significant progress in its ongoing turnaround journey.

There are a few things that investors should note. In the past, PC Jeweller has settled a matter with the Securities and Exchange Board of India by paying Rs 72.3 m for alleged violations of the Listing Obligations and Disclosure Requirements (LODR) Regulations.

In another piece of news released by Crisil Ratings, the rating agency has said it has been consistently following up with PC Jeweller for obtaining information through letter and email dated 15 April 2026 among others, apart from telephonic communication. However, the issuer has remained non cooperative.

Investors should therefore study governance issues of the past.

To know more check the PC Jeweller fact sheet and latest quarterly results.

#5 Jaiprakash Power Ventures

Next on our list is the stock of Jaiprakash Power Ventures.

The company is engaged in the business of thermal and hydro power generation, coal mining and cement grinding. The company presently owns and operates three Power plants with an aggregate capacity of 2,220 MW, 2 MTPA Cement Grinding Unit and 3.92 MTPA Coal Mine.

Foreign institutional investors have steadily increased their stake in Jaiprakash Power Ventures from 6.3% in June 2025 to 6.58% in March 2026, indicating gradual increase. While the trend is positive, FII ownership remains moderate.

Moving ahead, according to reports in the Mint, Adani Power has finalised agreements to acquire a 24% stake in Jaiprakash Power Ventures and the 180 MW Churk thermal power plant for Rs 41.93 bn. This deal aims to enhance Adani's generation capacity and is part of a larger resolution plan for Jaiprakash Associates.

On the financial front, the total income on a consolidated basis for the year ended 31 March, 2026, aggregated to Rs 57.92 bn as compared to Rs 57.07 bn in the previous year.

However, net profit after tax and exceptional items on a consolidated basis during the year under review stood at Rs 4.5 bn as compared to net profit on a consolidated basis of Rs 8.13 bn during the previous year FY25.

Overall, Jaiprakash Power Ventures offers exposure to India's growing power demand and has strengthened its balance sheet through sustained debt reduction.

Investor sentiment has also improved following Adani Power's proposed acquisition of a 24% stake, raising expectations of better governance and operational efficiency.

However, a full takeover remains speculative, and recent earnings have been mixed.

To know more, check the Jaiprakash Power Ventures fact sheet and latest quarterly results.

Should You Consider Stocks in Which FIIs Have Increased Their Stake?

A rise in FII (Foreign Institutional Investor) ownership in a penny stock can be a positive indicator, as it may signal growing confidence in the company's business, turnaround prospects, or valuation.

However, FII buying alone should never be the sole reason to invest. Many penny stocks remain highly volatile, illiquid, and vulnerable to sharp price swings.

Recent data also shows that FIIs have been selective, increasing stakes only in companies they believe have stronger long-term potential despite broader market caution.

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.

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...