3 Stocks in which both FIIs & DIIs hold more than 20% stake to add to your watchlist

When both FIIs and DIIs raise their stake above 20%, it signals strong institutional confidence in the company’s long-term prospects. For investors, this indicates potential stability, growth, and market leadership. For the industry, it reflects positive sentiment, attracting higher valuations and fostering sustained sectoral momentum.

1. CMS Info Systems

Manages cash logistics, including ATM maintenance, cash-in-transit, and cash processing for banks and retailers. Provides technology solutions like AI-powered security software and card personalisation services. Supports financial institutions with a nationwide network for efficient cash management.

With a market capitalisation of Rs. 6,791 crores, it fell to Rs. 408.50, hitting a low of up to 3.86 percent from its previous closing price of Rs. 424.90. For Q1 FY25, the shareholding pattern stood at FII: 36.96% and DII: 26.61%.

The company reported Q1FY26 revenue of Rs. 627 crore, registering a 5% YoY growth from Rs. 599 crore in Q1FY25 and a 1% QoQ increase over Rs. 619 crore in Q4FY25. On a three-year basis, revenue grew at a healthy 15% CAGR, reflecting consistent topline momentum.

Profit for Q1FY26 stood at Rs. 94 crore, which is an increase of 3.3% YoY from Rs. 91 crore in Q1FY25 and a 4% drop QoQ from Rs. 98 crore in Q4FY25, indicating margin pressures or one-offs impacting earnings.

Despite this quarterly weakness, the company has delivered a 3-year profit CAGR of 17% and maintained a 19% CAGR in ROE, pointing towards strong long-term profitability metrics.

2. Dixon Technologies 

Manufactures consumer electronics, appliances, lighting, and mobile devices for various brands. Operates advanced facilities and research centres focused on innovative product development. Emphasises quality and sustainable manufacturing to meet global and domestic demand.

With a market capitalisation of Rs. 1,01,027 crores, it rose to Rs. 16,870, hitting a high of up to 1.15 percent from its previous closing price of Rs. 16,678. For Q1 FY25, the shareholding pattern was FII: 20.55% and DII: 26.68%.

In Q1FY26, revenue came in at Rs. 12,836 crore, showing a strong 95% YoY growth from Rs. 6,580 crore in Q1FY25 and a solid 24.7% QoQ increase over Rs. 10,293 crore in Q4FY25. Profit stood at Rs. 280 crore, which marked a 100% YoY rise from Rs. 140 crore but a 39.8% QoQ decline compared to Rs. 465 crore in the previous quarter, indicating margin pressure despite robust sales growth.

Over the medium term, performance remains compelling with a 3-year revenue CAGR of 54%, a remarkable 3-year profit CAGR of 60%, and an ROE CAGR of 28%, underscoring strong business scalability and efficiency. Despite the sequential profit dip, the sharp YoY expansion reflects sustained market share gains and operating leverage.

3. TD Power Systems

Designs and produces AC generators for industrial power generation applications. Specialises in custom generators for diesel, gas, and steam turbine systems. Delivers reliable, high-efficiency power solutions for global markets.

With a market capitalisation of Rs. 7,861 crores, it fell to Rs. 496, hitting a low of up to 1.6 percent from its previous closing price of Rs. 504. For Q1 FY25, the shareholding pattern stood at FII: 23.70% and DII: 25.30%.

Revenue for Q1FY26 stood at Rs. 372 crore, growing 36% YoY from Rs. 274 crore and 7% QoQ from Rs. 348 crore in Q4FY25. Profit came in at Rs. 50 crore, rising 43% YoY from Rs. 35 crore but dipping 6% QoQ versus Rs. 53 crore in the previous quarter.

Over the last three years, profit delivered a strong CAGR of 39%, while sales registered a 17% CAGR, reflecting steady business growth. Return on equity also maintained healthy momentum with a 19% CAGR, underscoring consistent value creation for shareholders.

Written By Fazal Ul Vahab C H

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