Domestic institutions are buying these 5 stocks! - YouTube

Hello, 2022 has been a very turbulent year for the Indian and global markets.

The Nifty 50 index has moved between 18,000 to 16,000 levels twice (January-March and April-May) already.

Concerns about rising inflation are raising interest rates by central banks around the world, including in the USA, UK, EU, India, and many more countries.

Due to this rising rate cycle, it is expected that FII will outflow from emerging market equities which is very harmful to the emerging economy like India's stock market.

Here in this image, we can see that in the last 6 months there has been continuous outflow by FIIs.

Total FII outflows have crossed ₹2.46 lakh crore since November 2021 and the momentum is expected to continue.

But on the other hand, our DII ie Domestic Institutional Investors has maintained a steady inflow momentum.

DIIs have inflows of ₹1.95 lakh crore since November 2021, negating the impact of large FII outflows.

Despite the turbulence of the current market, DIIs have increased their stake in several companies, reflecting confidence in the associated Indian equities.

Therefore, today we will tell you about such stocks, in which DII has increased its stake the most in March 2022.

Of course, this does not mean that I invest blindly in your companies too.

Because before investing in any company, you should do good research about it.

While selecting the stocks we are in, it has been kept in mind that these companies are fundamentally strong,

so in this list, we will tell you about the stocks whose market cap is more than 10,000 Cr and ROI more than 15%

We have taken all the numbers covered in the video according to the price of 24th May 2022.

We will tell you at the end of the stock in which DII has increased its stake the most.

So let's start today's list.

The first company is TVS Motor Company Limited.

TVS Motors is the third largest 2-wheeler manufacturer in India.

The company has an annual capacity of 4.95 million 2-wheelers and 1.2 million 3-wheelers.

Apart from petrol scooters, motorcycles, and three-wheelers, the company also manufactures electric scooters.

The company's DII holdings had grown by 3.05% in Q4FY22.

The company's biggest strength is its massive exposure to the two-wheeler segment.

TVS is India's only auto company with a 25%+ market share in the category of Motorcycles, Scooters, and Mopeds.

It is also the second-largest scooter manufacturer in India with a market share of 42.5% in FY21.

The company has a major weakness in over-diversification.

Its' subsidiaries also include several unrelated financial businesses such as TVS Housing, TVS Commodity Financial Solutions, TVS Micro Finance, TVS Housing Finance, etc.

They have a significant part of the capital invested in them which increases their risk.

As you can see on your screen, we have shown some key financial and technical ratios of the issuing company.

We have also included the prices of 2 technical indicators so that you can see the stocks from a technical perspective as well.

We have used 2 indicators- 200 days simple moving average i.e. 200 days SMA and RSI (14).

If a company's stock price is trading above the 200 DMA, the stock can be considered bullish.

And if the price is trading down as compared to the 200 DMA then the stock can be said to be bearish.

In terms of RSI, RSI values ​​above 30 are generally considered oversold, and thus a trend reversal ie a downtrend can lead to an uptrend.

Similarly, an RSI value above 70 is considered overbought, and a trend reversal is likely.

Out of 41 different analyst ratings, 63% of analysts gave a call to the TVS stock.

These ratings do not buy/sell recommendations of any kind by Groww.

These ratings are derived by aggregating ratings given by different market analysts.

The second company on our list is Kajaria Ceramics Ltd.

Kajaria Ceramics is the largest manufacturer of Ceramic/Vitrified Tiles in India.

Apart from these tiles, they also sell sanitaryware under the brand name Kerovit.

The company's DII holdings had grown by 3.06% in Q4FY22.

The company's biggest strength is its established brand image and strong market presence.

Kajaria has a 10% market share in the overall tile industry and around 30% market share in the organized segment, making it the clear market leader.

Thereby, the company's margin profile and ROE consistently remains in the top 2 of the industry.

The company's major weakness is its excessive dependence on the real estate segment.

All Kajaria products are used in real estate development, in which the real estate industry is at high risk of exposure.

In addition, the cyclicality of the real estate cycle has a major impact on their sales.

As you can see on your screen, we have shown some key financial and technical ratios of the issuing company.

Out of 23 different analyst ratings, Kajaria stock is given a call by 82% of analysts.

The third company that we are going to talk about is Bharat Forge Limited.

Bharat Forge is the world's largest metal forging company.

It is part of the $3 billion Kalyani Group.

Apart from industrial sectors, their products are used in automobiles, power, oil and gas, aerospace, marine, railways, and infrastructure.

It is also India's largest exporter in the auto components space, which manufactures components for engines, chassis, and drivelines.

The company's DII holdings had grown by 3.53% in Q4FY22.

The company's biggest strength is its market leader position in domestic chassis and engine components for commercial vehicles.

It supplies components to domestic and global EV OEMs, giving it an edge over other smaller companies.

Bharat Forge has a major weakness, high auto sector exposure.

In 9M FY22, 42% of the company's revenue came from auto CV components.

Thereby the company is exposed to the cyclicality of the auto sector and the high risk of exposure.

The slowdown in the auto sector can hurt the company a lot.

Its's engine components business consists of ICE (Internal Combustion Engine) specific parts that are likely to be at risk from electrification in the auto sector in the future.

Now you can see some key financial and technical ratios of Bharat Forge right on your screen.

Out of 28 different analyst ratings, Bharat Forge stock has been given a call by 75% of analysts

The fourth company is Coforge Limited.

Coforge is an IT services company that is one of the top 20 software solution providers in India.

This company was earlier also known as NIIT Technologies.

The company's DII holdings had grown by 5.39% in Q4FY22.

The biggest strength of the company is its growing order book.

The executable order book over the next 12 months grew from $520 million in Q4FY21 to $720 million in Q4FY22.

The company's major weakness is the high competition in the Indian IT sector and its high customer concentration.

23% of the total revenue in FY22 came from the top 5 customers.

This means that if the company loses any of these clients then it can pad a negative impact on its business.

As you can see on your screen, we have shown some key financial and technical ratios of the issuing company.

Out of 21 different analyst ratings, 61% of analysts gave a call to the stock of Coforge

The last company we will talk about is Power Grid Corporation of India Limited.

POWERGRID is the largest power transmission company in India. It is a "Maharatna" Central Public Sector Enterprise.

The company's DII holdings had grown by 7.6% in Q4FY22.

The strength of POWERGRID is its strong cash generation capacity which has been over ₹21,000 crores every year since 2017.

This is why the company is easily able to raise the debt, while the equity has a debt of about 2 times.

In addition, the company has a huge asset base of Rs 2.5 lakh crore which it has the power to monetize through investment trusts to raise additional funds.

In an InvIT, ownership of large infra assets such as power transmission networks is issued to retail investors through units of an infrastructure investment trust.

Like REITs, invite investors to get periodic returns by earning large assets and it has got additional capital to infra developers like Power Grid for their loan repayment or new project investments.

The biggest weakness of the company is the old heritage assets which are in dire need of modernization.

In addition, the majority of the company's revenues come from state power utility players and discoms, whose credit profile remains weak.

If there is a delay or default in the settlements of these customers, POWERGRID can suffer a lot.

Now you can see some of the key Financial & Technical Ratios of POWERGRID on your screen.

Out of 22 different analyst ratings, POWERGRID stock is given a call by 77% of analysts.

So these were those 5 companies in which DII has increased its stake.

Tell us in the comments which of the companies are in your portfolio.

We remind you that these videos are for educational purposes only, and do not recommend any kind of buy/sell.

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