Top 5 Companies Where FIIs Increased Their Stake In The Last 4 Quarters

Post liberalization India has seen a flood of foreign inflows in the equity markets. Better known as FIIs, they have been driver of the equity markets. We are through with the Q2FY13 results. Here in this slide show we will be looking at the top five companies where the FIIs have increased their stake for the last four quarters starting from December 2012. We have used two conditions in the list. Firstly, we have considered companies having equity capital of more than Rs 50 crore and the market capitalisation of more than Rs 150 crore. A point that needs to be mentioned here that the FII investment in equity has crossed the Rs 1 lakh crore figure on a YTD basis.

Strides Arcolab: Incorporated in 1990, Strides Arcolab has business interests in specialty pharmaceuticals, pharma generics and branded generics. It has manufacturing operations in 14 global locations, an innovative R&D hub in Bangalore, India and a marketing network in 70 countries. The key focus of the company is on the development and manufacture of IP-led niche pharmaceutical products with an emphasis on sterile injectables. They are also among the world's largest soft gelatin capsule manufacturers.

The company has been on the radar of the FIIs and has giving a stupendous return of 165% on a YTD basis. The FIIs have been constantly raising their stake in the last four quarters from Q3FY12. The FII stake at the end of Q2FY13 stands at 40.70% as against 37.71% Q3FY12. The stock trades at a TTM P/E of 45.32x.

Jubilant Foodworks: The Company operates Domino’s Pizza brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. The Company has a network of 515 Domino’s Pizza Stores (as of 30th September 2012). The Company is the market leader in the organized pizza market with a 55% market share (Euromonitor Report 2012) and more than 70% share in the pizza home delivery segment in India. The Company launched Dunkin’ Donuts in India in April 2012 in Delhi. The Company has 6 Dunkin’ Donuts restaurants in India (as of 7th November 2012).

The FII stake at the end of Q3FY13 stands at 39.58% witnessing a constant up-move from 35.90% in Q3FY12. On a YTD basis the stock has yielded a return of 68.42%. The stock currently trades at a TTM P/E of 66.79x.

HDFC Bank: The HDFC Bank was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. Together with its subsidiaries, provides retail banking, wholesale banking, treasury, and other financial services to individual and business customers in India. As of March 31, 2012, the company operated a network of 2,544 branches and 8,913 ATMs in 1,399 cities.

The FII stake at the end of Q3FY13 stands at 32.17% witnessing a constant up-move from 29.67% in Q3FY12. On a YTD basis the stock has yielded a return of 55.04%. The stock currently trades at a TTM P/E of 26.71x.

Kotak Mahindra Bank: Founded in the year 1985 Kotak Mahindra Bank Limited offers banking and financial services to individuals and corporate clients in India. As of March 31, 2012, the company operated a network of 355 branches and 848 ATMs. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans.

The FII stake at the end of Q3FY13 stands at 27.04% witnessing a constant up-move from 27.04% in Q3FY12. On a YTD basis the stock has yielded a return of 48.50%. The stock currently discounts its trailing twelve month earnings by 40.99x.