When FIIs take a position in a penny stock, other investors pay attention to that stock, because FIIs move towards a penny stock only after doing a complete study.
A high holding of foreign institutional investors (FIIs) in a penny stock is often considered a positive sign because FIIs’ purchase is a sign of growth and stability of the stock. It is a sign of confidence from institutional investors who are invested in the company’s shares.
FIIs’ position in a penny stock can attract more retail investors, which can increase the price and liquidity of the stock.
Here are four penny stocks in which FIIs have a high stake.
Stratmont Industries Ltd
The company primarily manufactures and trades low-ash metallurgical (LAM) coke, which can produce 36,000 metric tons per year from its Bhachau unit located in Gujarat.
Stratmont Industries Ltd has a market cap of Rs 241 crore. The stock ended with a price of 82.9 rupees On Tuesday. This was an increase of 2 percent over the previous closing.
Foreign institutional investors own 28.07 % of shares held by Stratmont Industries Ltd as of the June 2024 quarter.
The company reported an 184.3 percent year-on-year growth in revenue in Q1 FY25 to Rs 5.43 crore as against Rs 1.91 crore in Q1 FY24. Profit after tax grew 38.5 percent to Rs 0.36 crore from Rs 0.26 crore in the same period.
Orchasp Ltd
Orchasp Ltd specializes in software development, web-based services, and IT consultancy. They offer services like hospital software as well as specific applications for industries with a particular focus on innovative technologies.
Orchasp Ltd has a market cap of Rs 56.1 crore. The price of shares for the company ended at the price of 3.09 rupees per share Tuesday. This was an increase of 1.31 % over the previous closing.
At the end of the quarter ending June 2024, institutional investors from abroad are holding 5.71 % of the total stake in Orchasp Limited.
The company recorded a 14.85 percent growth in revenue in the first quarter of FY 2025 to Rs 3.48 crore as compared to Rs 3.03 crore in the first quarter of FY 2024.
Profit after tax fell by 8 % to 0.23 crore rupees, compared to 0.25 crore rupees in the previous period.
LKP Securities Ltd
LKP Securities Ltd is a financial services company in India offering a variety of investment options across a variety of categories of assets, including equities commodities, and derivatives.
LKP Securities Ltd has a market cap of Rs 177 crore. The share price of the company was at 22.07 rupees per share, on Tuesday, which was down 2.26 % from the prior closing.
In the last quarter, which ended June 2024, institutional investors from abroad had 3.93 % of total shares held by LKP Securities Ltd.
The company reported a 67.7 percent growth in revenue in Q1 FY25 from Rs 18.17 crore in Q1 FY24 to Rs 30.47 crore. Profit after tax grew 188.7 percent to Rs 4.1 crore from Rs 1.42 crore in the same period.
Digidrive Distributors Ltd
Digidrive Distributors Ltd acts as master distributors for retail products in the digital market, with a focus on products such as Caravan Digital Music Player.
Digidrive Distributors Ltd has a market cap of Rs 189 crore. The price of shares of the company was 48.65 rupees for each share on Tuesday, which was down 2.45 % from the previous closing.
At the end of the quarter in June 2024, institutional investors from abroad were holding 3.62 % of Digidrive Distributors Limited’s total stake in Digidrive Distributors Ltd.
The company reported a 31.4 percent growth in revenue in Q1 FY25 from Rs 10.55 crore in Q1 FY24 to Rs 13.86 crore. Profit after tax increased 172 % to 1.36 crore rupees, up from 0.5 crore rupees during the same time.
Quick Fact
Company name: Stratmont Industries
| Company name | Stratmont Industries |
|---|---|
| Core business | Manufacturing and trading low-ash metallurgical (LAM) coke |
| Production capacity | 36,000 metric tons per year |
| Main location | Bhachau, Gujarat |
| Market cap | ₹241 crore |
| FIIs’ holding | 28.07% |
| Revenue growth in Q1 FY25 | 184% year-on-year |
| Q1 FY25 revenue | ₹5.43 crore |
| Q1 FY24 revenue | ₹1.91 crore |
| Profit growth in Q1 FY25 | 39% year-on-year |
| Q1 FY25 profit after tax | ₹0.36 crore |
| Q1 FY24 profit after tax | ₹0.26 crore |
Company name: Orchasp
| Company name | Orchasp |
|---|---|
| Core business | Software development, web services, IT consultancy |
| Specialized services | Hospital software, industry-specific applications |
| Market cap | ₹56.1 crore |
| FIIs’ holding | 5.71% |
| Revenue growth in Q1 FY25 | 15% year-on-year |
| Q1 FY25 revenue | ₹3.48 crore |
| Q1 FY24 revenue | ₹3.03 crore |
| Profit decline in Q1 FY25 | 8% year-on-year |
| Q1 FY25 profit after tax | ₹0.23 crore |
| Q1 FY24 profit after tax | ₹0.25 crore |
Company name: LKP Securities
| Company name | LKP Securities |
|---|---|
| Core business | Financial services, investment options across assets |
| Asset categories | Equities, commodities, derivatives |
| Market cap | ₹177 crore |
| FIIs’ holding | 3.93% |
| Revenue growth in Q1 FY25 | 67.7% year-on-year |
| Q1 FY25 revenue | ₹30.47 crore |
| Q1 FY24 revenue | ₹18.17 crore |
| Profit growth in Q1 FY25 | 188.7% year-on-year |
| Q1 FY25 profit after tax | ₹4.1 crore |
| Q1 FY24 profit after tax | ₹1.42 crore |
Company name: Digidrive Distributors
| Company name | Digidrive Distributors |
|---|---|
| Core business | Master distributor for digital market retail products |
| Focus products | Caravan Digital Music Player |
| Market cap | ₹190 crore |
| FIIs’ holding | 3.62% |
| Revenue growth in Q1 FY25 | 31.4% year-on-year |
| Q1 FY25 revenue | ₹13.86 crore |
| Q1 FY24 revenue | ₹10.55 crore |
| Profit growth in Q1 FY25 | 172% year-on-year |
| Q1 FY25 profit after tax | ₹1.36 crore |
| Q1 FY24 profit after tax | ₹0.5 crore |
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