These four midcap stocks have gained up to 180% in a year on consistent FII buying; check details

Foreign institutional investors, who have reduced their holding in the Indian stock market to decadal lows and rattled investor sentiments, have also added some stocks to their portfolios. There is a general notion in the market that FIIs have been selling relentlessly for the past 10-12 months and are largely pessimistic about the Indian markets. However, the daily figures of ₹4,000 to ₹5,000 crore reflect the net selling by the FIIs. In other words, it’s the difference between what FIIs bought and sold. So clearly, they have also bought certain stocks.

According to the NSDL data, FII’s net investments, including from primary and secondary markets, fell to ₹427 crore in 2024 as against ₹1,35,000 crore in 2023. Despite such relentless selling across the board, FIIs have increased stakes in some midcap stocks for the past five quarters.

Top four midcap stocks with a consistent increase in FII stake since Q3FY24

(Source: Ace Equity, market capitalisation as of 28th Jan,2025)

Torrent Pharmaceuticals

In 2024, the company's shares delivered impressive 51% returns, outperforming the benchmark NIFTY Pharma index at 37%. The company’s current market price trades 7% below the 52-week high of ₹3,590. Fundamentally, the company trades at a price-to-earnings ratio of 60.8x, well above the industry average of 35x. The company’s sales have grown at 10% CAGR for the last three years and profit at 8% CAGR for a similar period. The FIIs increased their stake in the company from 14.08% in December 2023 to 16.1% in December 2024.

Indian Hotels Company (IHCL)

IHCL's share price doubled in 2024, from ₹439 apiece in January 2024 to ₹877 in December 2024. The current market price of IHCL is 15% away from the 52-week high of ₹894. Fundamentally, the company trades at a PE ratio of 70x, compared to the industry average of 35x and a price-to-book ratio of 10.8x. FII ownership in the company increased to 27.7% in December 2024 from 23.1% in December 2023.

Lupin

Lupin's share price increased by 77% in 2024, beating the benchmark NIFTY Pharma index, which gained 37% in a similar period. The company's sales and profit have grown at 10% and 17% CAGR for the past three years. The company currently trades at a PE of 35.2x and price-to-book of 5.9x. FII ownership in the company has grown from 16.11% in December 2023 to 22.06% in December 2024.

Dixon Technologies

Shares of Dixon Technologies have gained 181% in 2024, outperforming its major peers. The company has delivered 40% CAGR in sales in the last three years and 32% CAGR in profits for a similar period. The FII ownership in the company has increased from 17.41% in December 2023 to 23.2% in December 2024. The stock has corrected nearly 21% from its record high levels of ₹19,117 and currently trades at a PE ratio of 139x against the industry average of 36x.

In conclusion

The gains in the above share price over the past year underscore that FIIs have maintained their positive stance in quality and high-growth companies despite broader pessimism on Indian markets. Secondly, the share price has also performed well, where the FIIs have consistently increased their stake.