Zomato and Varun Beverages among top FPI favourites

Foreign portfolio investment (FPI) involves holding financial assets from a country outside of the investor's own. It involves an array of financial assets like fixed deposits, stocks, and mutual funds. All the investments are passively held by the investors. Several factors affect Foreign Investment including the growth prospects of the country, interest rates as investors prefer a high return on investment and the tax rate on capital gains.

Here are the top 5 non-NIFTY 50 stocks with the biggest FPI holdings.

(Note - Shareholding as of June 24 and share price as of August 28, 2024)

Zomato Ltd

The foreign investors held over 54.11% of the shareholding as of June 2024. This represented a dip of 1% over the previous quarter, of which 46.13% were held by FPIs.

In Q1FY25 the food delivery aggregator reported a massive net profit growth of 126.5 times, reaching ₹253 crore from ₹2 crore a year ago and revenue surged 74% YoY to ₹4,206 crore.

Key highlights include gaining market share in Southern India, a 53% rise in Gross Order Value (GOV) to ₹15,455 crore, and Blinkit exceeding store addition targets despite an adjusted EBITDA loss of ₹3 crore.

Trent Ltd

The shareholding pattern revealed 27.87% weightage of foreign investors, of which 23.34% were held by FPIs, as of June 2024. In Q1FY25 earnings, net profit for the period jumped 134% YoY to ₹391.2 crore. Revenue for the quarter rose 56.2% YoY to ₹4,104.4 crore. During Q1, Trent reported a like-for-like growth of 22% compared to the same period last year. The company opened six Westside stores and 16 Zudio stores, bringing the total to 228 Westside and 559 Zudio stores, along with 36 other format stores.

Varun Beverages Ltd

As of June 2024, the foreign investors held a 25.32% stake in beverage stocks, which is entirely held by FPIs.In Q1FY25, the company’s profit jumped 26% YoY to ₹1,252.6 crore and revenue jumped 28.3% YoY to ₹7,197 crore.

Adani Green Ltd

The company is the renewable energy company of the Adani Group. The company has one of the world’s largest renewable portfolios. The company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects.

The Adani Group stock is owned 16.91% by foreign investors which are entirely held by FPIs.

In Q1FY25, it reported a 95% increase in its June 2024 quarter profit. Profit rose to ₹629 crore in Q1 against ₹323 crore in the June 2023 quarter. Revenue climbed 23% to ₹2,856 crore in Q1 against ₹2,322 crore in the June 2023 quarter.

Max Healthcare Ltd

It is the second largest healthcare chain in India with a network of facilities offering a wide range of healthcare services in various specialities such as cardiology, orthopaedics, cancer, paediatrics, and more. Through its facilities in Delhi, the National Capital Region, Mohali, and Bathinda.

The hospital chain is owned 56.99% by foreign investors, out of which FPIs hold 56.98% and FIIs hold 0.01% as of June 2024. In Q1FY25, it saw a 1.6% YoY dip in consolidated net profit at ₹236 crore, down from ₹240 crore recorded for the same period last year, revenue from operations rose to ₹1,543 crore, a 20 % YoY increase from ₹1,285 crore reported in Q1FY24.

Conclusion

In the article above, we have covered the top five stocks where foreign investors hold the highest stakes in non-Nifty companies. These companies span diverse sectors, including food delivery, retail, beverages, renewable energy, and healthcare. This broad investment spectrum reflects the confidence of foreign investors in the Indian growth story.