FPIs offloaded ₹780 billion in Indian equities in January—Here’s where they increased their stake

The selling pressure has continued into February, with outflows reaching ₹73.4 billion as of 10 February, according to National Securities Depository Ltd (NSDL) data.

Unlike the mixed trends observed in November and December 2024, January saw consistent selling, with FIIs exiting stocks in 22 out of 23 trading sessions. However, the temporary pause in December triggered fresh buying in select stocks, fuelling rallies in these counters.

Here’s a look at 10 stocks where FIIs increased their stake in the December 2024 quarter:

1. Greaves Cotton

Greaves Cotton manufactures internal combustion engines, power generation equipment, and power transmission systems. It also provides cleantech powertrain solutions for CNG, petrol, and diesel engines, along with e-mobility and aftermarket services.

FII ownership in Greaves Cotton surged from 1% in the September 2024 quarter to 2.4% in December 2024, according to the latest shareholding data.

Notably, investor Vijay Kedia acquired 1.2 million shares of Greaves Cotton via a bulk deal on 9 December 2024. This followed the company's approval of an IPO for its subsidiary, Greaves Electric Mobility, on 1 December 2024.

Greaves Electric Mobility, a key player in India's electric vehicle sector, has been designing and manufacturing EVs for over 16 years. The upcoming IPO will include a fresh equity issuance alongside an offer for sale from existing shareholders.

Greaves Cotton’s transformation from a diesel engine manufacturer to a fuel-agnostic mobility solutions provider may have attracted FII interest. The company has set an ambitious revenue target of ₹150 billion by 2030, driven by organic growth and acquisitions.

Meanwhile, its lending subsidiary Evfin aims to finance 500,000 electric two-wheelers over the next five years, a sharp increase from its current portfolio of 12,000 units.

2. Shaily Engineering

Shaily Engineering specializes in manufacturing plastic components using high-performance and ultra-high-performance polymers. The company also offers technological solutions for patient-centric and self-medication injection systems, including drug delivery devices, pen injections, and auto-injectors.

FII stake in Shaily Engineering rose from 3.1% in the September 2024 quarter to 5.4% in December 2024, marking a 2.3% increase.

Shaily is one of the few global manufacturers of insulin pens and has expanded its portfolio by developing proprietary intellectual property (IP) devices. This niche segment has high entry barriers due to stringent regulatory approvals, limiting competition.

The company is scaling up its healthcare segment, aiming to boost its revenue contribution from 18.6% currently to 25% by FY27.

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By focusing on IP-backed injection pens, Shaily is well-positioned for strong revenue growth, better margins, and resilience against economic downturns. In fact, the stock was one of 2024’s multibaggers, rallying up to 400%.

3. Borosil Renewables

Borosil Renewables is India’s only manufacturer of solar glass, playing a key role in the country’s green energy supply chain. It produces high-quality, toughened glass for solar photovoltaic panels and exports to the US, Turkey, and Europe.

FII stake in Borosil rose from 4.2% in the September 2024 quarter to 5.4% in December 2024, an increase of 1.2%.

This uptick follows the Indian government’s anti-dumping duty on solar glass imports from China and Vietnam, effective 4 December 2024. The six-month duty protects domestic manufacturers like Borosil from cheaper imports.

Currently, Borosil holds a 40% share of the domestic solar glass market, catering to 400+ customers. To meet growing demand, it announced a 50% capacity expansion in January, increasing production from 1,000 tonnes per day to 1,500 tonnes.

4. EID Parry

Part of the Murugappa Group, EID Parry operates in sugar and nutraceuticals and is a major producer of sugar, ethanol, and power in India.

FIIs increased their stake from 10.7% in the September 2024 quarter to 12.6% in December 2024.

The rise in FII interest is likely driven by EID Parry’s strategic diversification into branded food products, including rice, millets, and pulses, to reduce dependence on the cyclical sugar business.

The company has also expanded its retail presence in sweeteners and packaged foods, now reaching more than 110,000 storefronts nationwide.

Additionally, ethanol revenues are expected to rise significantly as India pushes forward with its ethanol blending mandate.

5. Brigade Enterprises

Brigade Enterprises, a leading Indian real estate developer, has built a strong presence across the residential, commercial, and hospitality sectors. The company is particularly well-known for its high-quality, innovative properties in South India, with a major focus on Bangalore, where it has developed some of the city’s most iconic projects.

According to the December 2024 shareholding data, FIIs increased their stake in the company from 18.5% in the September quarter to 20.3%, marking an uptick of 1.8%. This rise can be attributed to Brigade Enterprises' portfolio expansion and its growing emphasis on sustainability.

In December 2024, the company launched Brigade Citrine, India’s first net-zero residential project, in Bengaluru. Valued at around ₹500 crore, the 4.3-acre project consists of 420 residential units. Designed to align with Brigade Enterprises' goal of achieving net-zero emissions by 2045, the township at Budigere Cross, Whitefield, is expected to save approximately 8,900 tankers of water annually and use renewable energy for all common area lighting.

The company has also posted strong sales, with nearly 50% of its revenue in the first half of FY25 driven by five to six new launches. It is further expanding its footprint in Hyderabad, Chennai, and Bengaluru in the latter half of the fiscal year. Additionally, its upcoming project pipeline includes around 12 million square feet in Chennai, with a particular focus on the mid-segment, driving future growth.

6. Torrent Pharma

Torrent Pharmaceuticals is a leading Indian pharmaceutical company with a diverse portfolio spanning various therapeutic areas, including cardiovascular, central nervous system (CNS), gastrointestinal, and diabetes care. The company offers prescription-based drugs, over-the-counter products, and active pharmaceutical ingredients (APIs).

According to the latest shareholding data, FIIs increased their stake in Torrent Pharma from 14.5% in the September 2024 quarter to 16.2% in December 2024, reflecting a 1.7% rise. This increased interest can be attributed to Torrent’s recent strategic acquisitions.

The company acquired three brands from Germany’s Boehringer Ingelheim GmbH, with the deal expected to be finalized by March 2025. Torrent has already been marketing these brands under a co-marketing agreement with Boehringer Ingelheim India, and full ownership will further strengthen its portfolio. A key acquisition in this deal is Empagliflozin, a novel SGLT-2 inhibitor used for glycemic control in type 2 diabetes patients.

Looking ahead, Torrent Pharma plans to launch five to seven new products in the US market in FY26, which is expected to contribute to a 10-15% revenue growth.

7. Kalpataru Projects

Kalpataru Projects International Ltd (KPIL), formerly known as Kalpataru Power Transmission Ltd., is a key player in the global power transmission and infrastructure sector. The company specializes in engineering, procurement, and construction (EPC) services across power transmission and distribution networks, oil and gas pipelines, railways, and civil infrastructure projects.

Renowned for executing complex projects in both domestic and international markets, KPIL plays a crucial role in developing and maintaining critical infrastructure systems.

According to the latest shareholding data, FIIs increased their stake in Kalpataru Projects from 10.7% in the September 2024 quarter to 12.4% in December 2024, marking a 1.7% uptick. This increase is largely driven by the company’s recent order wins.

Kalpataru Projects secured new orders worth ₹22.7 billion, including transmission and distribution (T&D) projects in both domestic and international markets, along with residential building projects in India. Additionally, in December 2024, the company announced fresh orders valued at ₹10.1 billion, including contracts secured by its international subsidiaries.

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Looking ahead, KPIL plans to expand its reach further, leveraging its strong track record and diversified project portfolio to drive growth.

8. KEC International

KEC International, a key player in the engineering, procurement, and construction (EPC) sector under the RPG Group, operates across multiple infrastructure segments, including power transmission and distribution, railways, civil and urban infrastructure, solar energy, smart infrastructure, oil and gas pipelines, and cables.

With a strong global presence, the company operates manufacturing facilities in India, Dubai, Brazil, and Mexico, supporting an extensive supply chain across six continents and over 105 countries.

According to the latest shareholding data, FIIs increased their stake in KEC International from 13.6% in the September 2024 quarter to 15.2% in December 2024, reflecting a 1.6% rise. This uptick is likely linked to the company’s recent order wins.

In December 2024, KEC secured multiple orders worth ₹10.4 billion in its Transmission and Distribution (T&D) segment across international markets. These include supplying towers, hardware, and poles for projects in the Americas, as well as a 220 kV transmission line project in the Commonwealth of Independent States (CIS) region. The CIS order strengthens KEC’s foothold in the region and enhances its international T&D order book.

Looking ahead, the company expects to surpass its FY25 order inflow guidance of ₹250 billion, backed by a strong tender pipeline valued at ₹1.5 trillion.

9. Atul Ltd

Atul Ltd has grown into one of India’s leading chemical companies, with a strong global footprint. Its specialty chemicals division spans agrochemicals, pharmaceuticals, polymers, dyes, and intermediates, serving industries such as textiles, automotive, healthcare, and consumer goods.

Known for its high-quality standards and advanced technology, Atul continues to strengthen its market presence across various sectors.

According to the latest shareholding data, FIIs increased their stake in Atul from 9.7% in the September 2024 quarter to 11.2% in December 2024, marking a 1.5% rise. This increase is likely driven by the company’s strong Q2 performance.

Atul’s revenue surged 16.7% year-on-year (YoY) to ₹13.9 billion, up from ₹11.9 billion in the previous year. Meanwhile, net profit jumped 50.6% YoY to ₹1.4 billion from ₹0.9 billion.

Looking ahead, Atul plans to expand its production capacity to capitalize on growing demand and sustain its growth momentum.

10. Action Construction Equipment

Action Construction Equipment (ACE) is India’s leading material handling and construction equipment manufacturer. The company produces a range of world-class machinery, including mobile cranes, backhoe loaders, forklifts, and agricultural equipment.

ACE is the country’s largest producer of pick-and-carry cranes and holds a dominant market share in both the mobile cranes and tower cranes segments.

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According to the latest shareholding data, FIIs increased their stake in ACE from 10.5% in the September 2024 quarter to 11.9% in December 2024, reflecting a 1.4% rise. This uptick likely signals investor confidence in the company’s growth trajectory.

Executive Director Sorab Agarwal has reiterated the company’s target of 15% topline growth in FY25, citing a stronger outlook for the second half of the fiscal year. At the start of FY25, ACE had projected revenue growth of 15–20%, and it remains on track to achieve this, driven by improving demand.

Conclusion

Stocks with growing FII interest often signal confidence in a company's long-term potential. FIIs typically invest in strong, well-established firms, and their buying activity can enhance liquidity and even drive stock prices higher.

However, investors should be mindful of risks. FIIs can have shorter investment horizons and may exit quickly in response to changing market conditions, leading to volatility. Moreover, their investment decisions may be influenced by broader market trends rather than company-specific fundamentals.

This is why thorough research is essential. Investors should assess corporate governance, regulatory risks, policy shifts, and execution challenges 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.

This article is syndicated from Equitymaster.com