After being net sellers from January to March 2025, Foreign Institutional Investors (FIIs) finally turned net buyers in April with an overall net equity purchase of ₹4,223 crore. Having said that, there are a few stocks that FIIs didn’t sell during Q4FY25 but rather increased their holdings.
It can be quite interesting to understand why FIIs are so fond of these select stocks. Instead of selling, FIIs kept on adding these stocks to their portfolios even when markets were crashing during Q4FY25.
Here we focus on three such stocks, where FIIs hold more than 60% stake, and have increased the holdings in the previous quarter as well, amidst the selling spree.
360 ONE WAM Ltd., a wealth management giant, currently has the highest FII holding of 67.22%. This firm witnessed a 1.06% points rise in FII holding during the Jan-March quarter when most of the stocks were being dumped by the FIIs.
So, what is making the FIIs so interested in this wealth management firm? While we cannot say for sure but there are a few factors which might have caught the eyes of the FIIs.
During Q3FY25, the firm witnessed a whopping 45% rise year-on-year (YoY) in its total revenue, which was primarily driven by strong growth of Annual Recurring Revenue Asset Under Management (ARR AUM).
Only from operations, revenue surged by 37.7% YoY, while the ARR revenue went up by 26.2% YoY during the quarter. The total AUM for the Q3FY25 grew 27.6% YoY. 360 ONE’s profit after tax (PAT) for the Jan-Mar quarter increased 41.7% YoY.
The company has been growing strongly in recent times, and these recent numbers just underscore that. , Perhaps this was just one of the factors that may have influenced the FIIs to buy more stake in this wealth management business.
The top three FIIs holding stakes in 360 ONE WAM Ltd. in Q4FY25 include –
- BC Asia Investments X Limited has a 22.55% stake
- Smallcap World Fund, Inc. has a 7.87% stake
- Capital Income Builder has a 4.04% stake
Cartrade Tech has been one of the favorites of FIIs. Even when they were offloading equities heavily during Q4FY25, this is one stock that they purchased at a breathtaking pace.
Currently, FIIs hold 60.69% of the stake in this company, with 5.84% points rise in the FIIholding during Q4FY25.
FII’s fondness for Cartrade might have been triggered due to the unique business idea of building a new-age automobile platform that connects customers, dealers, vehicle OEMs, and other industry players without any hassle.
Apart from these, the growing net profit might also have attracted the FIIs. During Q2FY25, the net profit growth YoY stood at 101%. If you thought that was a flash in the pan, well, the company profits grew by 94% YoY during Q3FY25. The Earnings per share (EPS) jumped from ₹5.89 in Q2FY25 to ₹9.01 in Q3FY25, while it was at a negative ₹5.17 during Q3FY24, indicating a massive turnaround in the earnings.
The operating margin can be another factor attracting the FIIs. The company has been growing continuously for the past two quarters. During Q2FY25, operating profits margin grew to 21% while in Q3FY25, it grew further to 28%.
Revenues at Cartrade grew by 32% during 9MFY25, while the EBITDA grew at a solid 100% during the period.
FIIs might also have considered that this automobile platform is entirely debt-free.
The top three FIIs having stakes in Cartrade Tech include –
- Macritchie Investments Pte Ltd. has a 9.13% stake
- The Prudential Assurance Company Limited has a 2.91% stake
- Oxbow Master Fund Limited has a 2.82% stake
Redington Ltd., a renowned IT and mobility products distributor and supply chain management solutions provider across India, Turkey, Middle East, has the third highest FII holding during Q4FY25. FIIs own a 60.6% stake in the company, and during the quarter, FIIs even increased the stake by 2.0% points.
For this company, sales growth might be one of the factors driving further interest from the FIIs. During Q2FY25, sales grew by 12.0% YoY, while in Q3FY25, it grew by 13.7% YoY. Even though the growth of net profit was negative during Q2FY25, it narrowed down compared to Q1FY25. During Q3FY25, the firm managed to post a profit, growing 17% YoY.
The EPS rose in consecutive quarters.n Q2FY25, it stood at ₹3.75, up from ₹3.15 in Q1FY25. In Q3FY25, it jumped to ₹5.12 per share.
Another factor that might have caught the attention of the FIIs is the attractive valuation of the company. Redington’s P/E is at 16.08 while the industry P/E stands at 28.3. However, the 10-year median P/E of the stock is 10, implying it’s trading at a premium to its own long term trend
Redington’s dividend payout ratio might also have attracted the FIIs, as the company has been maintaining a 40% ratio for the past three financial years. It is one of the highest in the industry as well. The dividend yield is one of the highest in the industry at 2.5%.
The top three FIIs having stakes in Redington in Q4FY25 include –
- Syntex Mauritius Ltd. has a 24.12% stake
- Fidelity Puritan Trust – Fidelity Low-Priced Stock Fund has a 3.13% stake
- Massachusetts Institute of Technology has a 1.88% stake
Other Stocks with FII holding above 50%
Final thoughts
These FII holdings above are quite interesting as Q4FY25 witnessed one of the highest sales by FIIs across the equity segment. However, the three stocks mentioned above not only have the highest holding, but FIIs increased their holding in these companies during the Q4FY25. This perhaps suggests potential in these stocks. As FIIs have turned net buyers in April 2025, it will be interesting to see whether they invest more in these select stocks, hold them, or sell them off in the future.
Disclaimer:
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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