FPI buying in small cap stocks attracts analysts’ attention

Two out of four stocks that saw heavy FII buying in the September quarter have caught the attention of certain analysts, even as both companies saw a senior executive put in his papers.

Technology services provider Onward Technologies saw Mauritius-based Infinity Direct Holdings buying a 24.38% stake in the company during the September quarter, increasing the FPI holding from near zero levels in the preceding quarter when a single FPI held just 173 shares. The stock price surged 31% from September end through 2 December to ₹333.6. The promoters own 45.52%.

The other company is Salasar Techno, a telecom tower manufacturer, which saw FPI holding jump 11.25% sequentially from 0.93% to 12.18% in the September quarter. The Street gave a thumbs-up to the stock, which jumped 31.6% to ₹41 apiece post the rise in FPI holding from Q2FY23 end through 2 December.


Nomura Singapore Pte held 3.99%, Fores EMF (4.28%) and AG Dynamic Funds (1.69%) as of September end. Salasar Techno split the stock in the ratio of 1:10 during the quarter.

Equity analysts Mint spoke to from two well-known brokerages mentioned that markets had noticed the jump in foreign holdings but added that neither Onward nor Salasar was part of their coverage.

Salasar Techno told the stock exchanges of the resignation of its company secretary and compliance officer, Rahul Rastogi, effective 30 November, on 1 December.

Onward informed the stock exchanges of the resignation of its chief financial officer Devanand Ramandasani, “to pursue other opportunities outside the organization" on 2 December. The other two stocks that saw a spurt in FPI holdings were CanFin Homes and Parag Milk Foods.

CanFin, in which Canara Bank holds almost 30%, saw FPIs make a fresh entry by picking up 9.31%during Q2. The share price rose a more modest 15% to ₹552 from September end to 2 December.

Parag Milk Foods, known for its Gowardhan brand of dairy products, saw FPI stake rise to 12.95% by the Q2 end from 3.42% in the preceding quarter. Of this, AG Dynamic Funds held 10.24% and India Insight Value Fund 2.17%.

This article taken by livemint.com

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