5 stocks where foreign investors (FPIs) have increased their stake

As you must be aware that in the last one-and-a-half year, a strong bull run has been seen in the Indian stock market.

In such a situation, foreign portfolio investors (FPIs) have also been net positive investors in the Indian equity market during the period from December 2020 to October 2021.

According to Bloomberg data, between December 2020 and October 2021, FPIs have bought shares worth Rs 44879 crore as you can see in the table that out of the 10 months passed so far in 2021.

November 2020	70896
December 2020	53500
January 2021	14512
February 2021	21960
March 2021	16960
April 2021	-11116
May 2021	7842
June 2021	10932
July 2021	-12746
August 2021	5222
September 2021	8348
October 2021	-17034
November 2021	374

Source: Bloomberg Quint

FPIs have been net buyers in seven months. And have been net sellers in just three months. In which the month of October is also included.

In this article, you will know about 5 such stocks selected out of BSE-200 in which FPI has increased its stake the most in the last three quarters.

We will present today’s list in ascending order i.e. at the end we will tell you about the stock in which FPI stake is highest in the recent quarter.

MRF Limited

The first company is India’s largest Tyres manufacturing company MRF Limited. The stake of FIIs in this company was 12.7% in December 2020, which has increased to 14.8% in the September 2021 quarter.

The company has a P/E ratio of 27.45 and a debt to equity of 0.17. The company has a return on equity of 9.99% and a net profit margin of 7.92%.

If we talk about the sales growth, then in the last 5 years the sales of the company have decreased by the rate of -4.34%.

The share price of the company has increased by 13.96% in the last year and in the last 5 years, the company has given a compound annual return of 8.25%.

SBI Cards & Payment Services Limited

The second company is Credit cards and payment services related company SBI cards & Payment Services limited The stake of FIIs in this company was 5.8% in December 2020 which is increased to 13.1% in September 2021 quarter.

The company has a P/E ratio of 98.17 and a Debt to equity ratio of 2.72. The company has a return on equity (ROE) of 16.92% and a net profit margin of 10.59%.

If we talk about sales growth, then in the last 5 years, the company’s sales have compounded by 31.2%. The share price of the company has increased by 33.73% in the last year.

The IPO of this company came in 2020 and till now the company has given returns of almost 42.11% from its IPO price.

Crompton Greaves Consumer Electricals Limited

The third company is Crompton Greaves Consumer Electricals Limited, one of the leading electricals and lighting companies in India.

The stake of FIIs in this company was 34.3% in December 2020, which is increased to 41.5% in the quarter of September 2021.

The company has a P/E ratio of 43.91 and a debt to equity ratio of 0.17. The Company’s Return on Equity is 35.71% and its Net Profit Margin is 12.73%.

If we talk about sales growth, then in the last 5 years the sales of the company have compounded at the rate of 21.64%.

The share price of the company has increased by 55.25% in the last year and in the last five years, the company has given a compounded annual return of 23.53%.

HDFC Life Insurance Company Limited

The fourth company involved in the business of life insurance is HDFC Life Insurance Company Limited.

The stake of FIIs in this company was 24.9% in December 2020, which will increase in the quarter of September 2021 to 30.1%.

The company’s P/E ratio is 126.8 with debt to equity of 0.07%. The Company’s Return on Equity is 15.37% and its Net Profit Margin is 1.66%.

If we talk about sales growth, then in the last 5 years the sales of the company have been compounded at the rate of 31.57%. The share price of the company has increased by 33.73% in the last year.

The IPO of this company came in November 2017 and till now the company has given returns of 142% almost from its IPO price.

Piramal Enterprises Limited

The fifth company is involved in the business of financial services and pharmaceutical Piramal Enterprises limited.

The stake of FIIs in this company was 28.6% in December 2020, which increased to 35% in the September 2021 quarter.

The company has a P/E ratio of 50.55 and a debt to equity of 1.22. The company has a return on equity (ROE) of 4.15% and a net profit margin of 10.57%.

If we talk about sales growth, then in the last 5 years, the company’s sales have been compounded at the rate of 15.1%.

The share price of the company has increased by 102.7% in the last year and in the last 5 years, the company has given a compound annual return of 13.63%.

So these were the five companies in which FPI has increased its stake the most in the last 3 quarters. You can see all these companies in the table below.

Name	December 2020	March 2021	June 2021	September 2021
Crompton Greaves Consumer	34.3	39.2	40.1	41.5
Piramal Enterprises	28.6	29.1	33.3	35
HDFC Life Insurance Company	24.9	25.7	26.1	30.1
MRF	12.7	13.5	14.1	14.8
SBI Cards & Payment Services	5.8	8.6	12.5	13.1

Source: Bloomberg

You can see how FPIs have consistently increased their stake in these five companies since December 2020.

Let us remind you that this article is for educational purposes only and there is no buy or sell recommendation of any kind.

FAQ

How much did foreign investors (FPIs) increase their stake?