Looking for value picks? These 10 small-cap stocks are the darlings of foreign investors

Indian equity benchmarks Sensex and Nifty are trading at all-time highs. This outperformance has mainly been led by the blue-chip large-cap stocks. However, investors are now also searching for value picks in the broader markets. The small-cap space can provide some multi-baggers as the upside potential is higher, but so are the risks. Many investors tend to create their portfolios by replicating institutional investors such as DIIs and FIIs. These Investors like to pick stocks that have high institutional investments. Business Today’s research bureau has compiled a list of select small-caps that have high foreign investor stake.

Data available with Ace Equity shows that multi-channel auto platform CarTrade Tech is the leader in this list. As of the March quarter, foreign investors had 69.95 per cent stake in this small-cap stock. CarTrade Tech has a current market capitalisation of Rs 2,242.6 crore and it posted Rs 364 gross sales and Rs 34 crore net profit in FY23. It is followed by technology solution provider company Redington Ltd, which has a 60.50 per cent foreign stake. Redington has an m-cap of Rs 14,570 crore and has Rs 79,377 crore gross sales and Rs 1,392 crore net profit in FY23.

Chemical sector company Kiri Industries is ranked third. This dyes and pigments manufacturer has 46.53 per cent foreign shareholding. Kiri Industries’ market cap s Rs 1,447 crore. Pharmaceuticals maker Piramal Pharma is at number four, with foreign stake at 39.28 per cent and market cap of Rs. 10,841 crore. With 38.86 per cent foreign ownership Standard Industries stands fifth. It has a presence in the textiles, chemicals, and apparel businesses and has a current market valuation of Rs 157.4 crore.

Some other prominent small-cap stocks that have high foreign investment are Aavas Financiers with foreign shareholding of 38.83 per cent, Aster DM Healthcare (38.63 per cent), Sansera Engineering (38.10 per cent), TeamLease Services (36.47 per cent) and Amara Raja Batteries (36.19 per cent).

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