Five stocks where FIIs increased their stake in March quarter; do you own any?

Stock market today: Investors, both institutional and retail, revise their investment portfolios regularly to get maximum returns. They add and/or buy securities that hold promise and have a positive outlook and trim, or sell their stakes in those securities whose future performance looks gloomy for a host of reasons.

The latest shareholding pattern (March 2024 quarter) shows that foreign investors (FIIs and FPIs) have raised their stakes in a diverse set of companies. Here is a list of five such stocks where FII shareholding saw a substantial increase.

Data Patterns

The stock of the defence and aerospace electronics solutions provider was listed on the bourses in December 2021. Foreign institutions have increased their holding in the company from 6.74 per cent in the December quarter to 14.56 per cent in the March quarter—an increase of 7.82 per cent. 

CAMS

Computer Age Management Services is one of the darlings of FIIs, as they increased their stakes in the company by 6.09 per cent. The FII holding, which stood at 47.69 per cent in the December quarter, surged to 53.78 per cent in the quarter that ended on March 31. 

Eureka Forbes

The FII/FPI shareholding increased to 16.01 per cent from 10.76 per cent in the December quarter, up 5.25 per cent. 

InterGlobe Aviation

Foreign institutions increased their stake to 23.66 per cent from 18.70 per cent—up 4.96 per cent.

Lemon Tree Hotels

FIIs/FPIs increased their stake in the hospitality company from 22.82 per cent to 27.09 per cent, up 4.27 per cent.

As regards the hotel sector, Kotak Institutional Equities notes in its latest report that the average hotel room rates in India rose 14 per cent YoY to Rs 7,560/day in 11MFY24. The exit room rate for February 2024 at Rs 8,900/day (+7% yoy) scaled a new peak, with occupancy at 73 per cent, implying a RevPAR of Rs 6,500/day (+10% you).

RevPAR means revenue per available room. The brokerage remains constructive in the hospitality space in India, owing to favourable demand-supply dynamics.

It says that Lemon Tree should see a 39 per cent EBITDA CAGR over FY2024-26E as the Aurika (~2X ARR in comparison to the portfolio average) stabilises in terms of its occupancy and earnings.

"Lemon Tree has grown its portfolio rapidly, crossing 10,000 keys. It added the 669-key Aurika Hotel at the Mumbai Airport in October 2023, but it has a negligible pipeline of owned hotels going forward, which could limit absolute EBITDA growth beyond the ARR/occupancy improvement. Lemon Tree should, however, continue to add managed/franchised keys—it had a pipeline of 3,677 keys as of December 2023 (to be opened by FY2027E)."

Shareholding pattern source: Trendlyne