Stocks with increasing FII holdings rallying high!

By ZRG | Last Updated: Tuesday, December 4, 2012 - 12:17

Rohit Joshi and Ajay Vaishnav /Zee Research Group/Delhi

At 19339.90, Sensex closed at the highest level of 2012 on Friday, November 30. But the BSE index’s rally which has so far posted returns of over 25 per cent has particularly benefited stocks with increasing foreign institutional investor (FII) holdings across the sectors.

To test the upbeat mood, Zee Research Group (ZRG) randomly picked few stocks which have recorded new highs in the last two days’ rally. Shares like Strides Arcolab, HDFC Bank, Kajaria Ceramics, Bajaj Corp, Eicher Motors, and Kansai Nerolac have touched never before levels of 1211.05, 705, 257.85, 242.6, 2775, and 1114 respectively.

The common thread that runs through is that FII holdings in these counters have continuously increased from the October-December quarter of last fiscal (Q3FY12) to the last reported one (Q2FY13). For instance, during the period under review, FIIs continuously raised their stake in Strides Arcolab from 37.7 per cent to 40.7 per cent levels. Similarly, FIIs hiked their stake in HDFC Bank from 29.67 to 32.17 per cent.

Furthermore, FIIs increased their stake in Kajaria Ceramics from 7.16 to 13.68 per cent levels.

Barring Eicher Motors and Kansai Nerolac, reported profits of these companies in the last reported quarter (Q2FY13) have increased compared to the corresponding quarter last year (Q2FY12).

Moreover, stocks like Strides Arcolab, Kajaria Ceramics, Bajaj Corp, and PVR have generated stupendous returns of 183 per cent, 156 per cent, 133 per cent, and 134 per cent respectively so far in this calendar.

Exhibit1: Stocks with increasing FII holdings rallying high

S.No.

Company Name

Industry

FIIs holding in Q2FY13 (September 2012 in per cent)

FIIs holding in Q1FY13 (in per cent)

FIIs holding in Q4FY12 (in per cent)

FIIs holding in Q3FY12 (December 2011) (in per cent)

1

Strides Arcolab Ltd.

Pharma

40.70

40.32

39.15

37.71

2

HDFC Bank Ltd.

Banking and Financial

32.17

31.13

30.68

29.67

3

Kotak Mahindra Bank Ltd.

Banking and Financial

29.80

28.58

28.24

27.04

4

Kajaria Ceramics Ltd.

Ceramic/Vitrified tiles

13.68

10.54

8.64

7.16

5

Bajaj Corp Ltd

FMCG

9.48

9.34

9.20

7.08

6

Eicher Motors Ltd.

Auto

9.08

7.84

7.07

6.18

7

PVR Ltd.

Film Exhibition

8.50

5.16

3.98

2.97

8

Kansai Nerolac Paints Ltd.

Paints

7.58

7.22

6.57

6.29

9

Cipla

Pharma

20.79

18.08

16.07

13.09

10

Radico Khaitan

Liquor

26.62

25.57

25.38

24.35

Source:BSE website

Exhibit 2: Stock touching recordhigh levels

S.No.

Company

52 week high levels

Date of scaling record highs

Price as on 30 Dec. 2011 in Rs

Current Market Price in Rs

YTD Returns in per cent

Last reported profit in Jul-Sept qtr of 2011 (Rs cr)

Last reported profit in Jul-Sept qtr of 2012(Rs cr)

Increase/Decrease on YoY basis in per cent

1

Strides Arcolab Ltd. (LTH)

1211.05

29-Nov-12

401

1132.9

182.5%

46.5

52.5

13.0%

2

HDFC Bank Ltd. (LTH)

705

30-Nov-12

427.05

702.1

64.4%

1199.4

1560.0

30.1%

3

Kotak Mahindra Bank Ltd.

673.8

30-Nov-12

432.25

668.7

54.7%

432.6

502.2

16.1%

4

Kajaria Ceramics Ltd. (LTH)

257.85

30-Nov-12

100.55

256.95

155.5%

19.3

26.5

37.8%

5

Bajaj Corp Ltd (LTH)

242.6

30-Nov-12

98.35

229.55

133.4%

28.7

38.4

33.6%

6

Eicher Motors Ltd. (LTH)

2775

29-Nov-12

1475.9

2730.15

85.0%

73.7

66.0

-10.5%

7

PVR Ltd.

306.5

30-Nov-12

129.2

301.7

133.5%

14.2

16.1

13.3%

8

Kansai Nerolac Paints Ltd. (LTH)

1114

29-Nov-12

853.95

1081.75

26.7%

57.1

47.4

-17.0%

9

Cipla

415.9

30-Nov-12

319.55



First Published: Tuesday, December 4, 2012 - 11:12

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