Foreign Institutional Investors (FIIs) play a crucial role in shaping the stock market, particularly in small and mid-cap stocks. A decline in FII stakes can be due to profit booking, valuation concerns, or changing market sentiment.

In this article, we analyze 11 small and mid-cap companies that saw a significant decrease in FII holdings in the latest quarter.

1. NCC Ltd (FII Holding: 18.13%)

FII Stake Reduction: -2.73%

Sector: Construction & Infrastructure

NCC Ltd specializes in EPC contracts and BOT projects. While infrastructure remains a key growth sector, investor sentiment may have been influenced by macroeconomic factors.

P/E Ratio: 14.1

ROCE: 22.1%

Change in FII Holding: ⬇ -2.73%

2. Ujjivan Small Finance Bank Ltd (FII Holding: 17.87%)

FII Stake Reduction: -2.75%

Sector: Banking & Financial Services

Ujjivan Small Finance Bank focuses on financial inclusion, serving underserved populations. Despite its strong fundamentals, the sector remains sensitive to regulatory risks.

P/E Ratio: 6.98

ROCE: 54.3%

Change in FII Holding: ⬇ -2.75%

3. Titagarh Rail Systems Ltd (FII Holding: 13.67%)

FII Stake Reduction: -2.65%

Sector: Railways & Infrastructure

Titagarh Rail Systems manufactures freight wagons, passenger coaches, and metro trains. The decline in FII holding may be due to valuation concerns after a strong rally in the stock.

P/E Ratio: 32.4

ROCE: 25.0%

Change in FII Holding: ⬇ -2.65%

4. Manappuram Finance Ltd (FII Holding: 27.01%)

FII Stake Reduction: -3.35%

Sector: Financial Services

Manappuram Finance offers gold loans and other financial services. Regulatory scrutiny in the NBFC sector may have led to a reduction in FII interest.

P/E Ratio: 8.73

ROCE: 13.8%

Change in FII Holding: ⬇ -3.35%

5. Shoppers Stop Ltd (FII Holding: 3.32%)

FII Stake Reduction: -3.76%

Sector: Retail & Fashion

Shoppers Stop is a leading retailer in India. While the company has a strong brand, the retail sector faces challenges from e-commerce competition.

P/E Ratio: 151

ROCE: 11.8%

Change in FII Holding: ⬇ -3.76%

6. Honasa Consumer Ltd (FII Holding: 15.44%)

FII Stake Reduction: -3.87%

Sector: Beauty & Personal Care

Honasa Consumer Ltd, the parent company of Mamaearth, is a high-growth digital-first beauty brand. However, its expensive valuation may have led to FII selling.

P/E Ratio: 103

ROCE: 17.1%

Change in FII Holding: ⬇ -3.87%

7. ITD Cementation India Ltd (FII Holding: 17.04%)

FII Stake Reduction: -3.95%

Sector: Infrastructure & Construction

ITD Cementation specializes in large-scale EPC projects. The infrastructure sector is capital-intensive, and rising interest rates may have impacted investor sentiment.

P/E Ratio: 26.9

ROCE: 27.1%

Change in FII Holding: ⬇ -3.95%

8. TBO Tek Ltd (FII Holding: 38.05%)

FII Stake Reduction: -5.01%

Sector: Online B2B Travel Services

TBO Tek operates a B2B travel platform. Despite strong business growth, the stock is trading at a high valuation, making it vulnerable to profit booking.

P/E Ratio: 66.1

ROCE: 42.9%

Change in FII Holding: ⬇ -5.01%

9. Chennai Petroleum Corporation Ltd (FII Holding: 11.08%)

FII Stake Reduction: -5.09%

Sector: Oil & Gas Refining

Chennai Petroleum refines crude oil and produces petroleum products. The company's performance is closely linked to global crude oil price fluctuations.

P/E Ratio: 22.6

ROCE: 35.1%

Change in FII Holding: ⬇ -5.09%

10. SpiceJet Ltd (FII Holding: 15.76%)

FII Stake Reduction: -7.11%

Sector: Aviation

SpiceJet operates in a challenging environment with high fuel costs and operational struggles. The airline industry’s volatility may have contributed to the decline in FII interest.

ROCE: 1.64%

Change in FII Holding: ⬇ -7.11%

11. Mahanagar Gas Ltd (FII Holding: 25.75%)

FII Stake Reduction: -8.45%

Sector: City Gas Distribution (CGD)

Mahanagar Gas supplies natural gas in Mumbai and surrounding areas. Despite strong financials, regulatory concerns and profit booking may have led to the reduction in FII stakes.

P/E Ratio: 12.0

ROCE: 36.6%

Change in FII Holding: ⬇ -8.45%

A decline in FII holdings does not always indicate a bearish outlook for a stock. Factors like profit booking, valuation concerns, or sectoral shifts may drive these changes. Investors should conduct thorough research before making investment decisions.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own analysis or consult with a financial advisor before making investment decisions. Stock markets are subject to risks, and past performance does not guarantee future results.