Domestic institutional investors (DIIs) continued to provide strong support to the Indian equity market during the July-September quarter, remaining net buyers with purchases worth ₹1,69,397.7 crore. According to reports from The Financial Express, DIIs invested in domestic equities even when the broader market faced pressure, with the Nifty 50 declining around 5.2% during the quarter. This contrast highlights the role of domestic investors in supporting the market during a period of weakness, with the institutional support not limited to broad market exposure.
Five companies saw sharp increases in domestic institutional ownership during the quarter, with each company having a market capitalisation of at least ₹5,000 crore to rule out any random and very small companies. As reported by The Financial Express, RHI Magnesita India saw the highest DII increase at 11.73 percentage points, taking total holding to 26.07%, followed by Gujarat Themis Biosyn with an 11.48 percentage point increase to 12.65%, and Tenneco Clean Air India with an 11.24 percentage point increase to 22.69%. Diamond Power Infrastructure recorded a 10.98 percentage point increase to 11.21%, while KFin Technologies saw a 10.23 percentage point increase to 37.54%.
According to The Financial Express, RHI Magnesita India holds more than 30% market share as the manufacturer and supplier of high-grade refractory products, with flow control products contributing around 35% of its revenue. The company is building a greenfield mineral processing facility in Odisha via its joint venture, MINPRO, with an initial investment of ₹35 crore over two years, expected to generate EBITDA margins of 8% to 10%. The company reported revenue of ₹1,014 crore with EBITDA rising 42% to ₹147 crore, while net profit nearly doubled to ₹65 crore from ₹35 crore. However, the stock trades at a P/E of 39.22x compared to the industry median of 28.57x.
As reported by The Financial Express, Gujarat Themis Biosyn is the first in India to start commercial production of Rifampicin, an anti-tuberculosis drug, with revenue increasing 22.1% YoY to ₹43.8 crore and EBITDA surging 49.4% to ₹20.8 crore. The company's EBITDA margin improved by 867 basis points to 47.5% from 38.81% a year earlier. The proposed acquisition of Japan-based MicroBiopharm is expected to give access to precision fermentation technologies and help the company have a 7-8 year head start in building CDMO capabilities. However, the stock trades at a P/E of 103.64x significantly above the industry median of 32.02x.
According to The Financial Express, while DIIs raising stakes above 10 percentage points in all these stocks reflects rising institutional interest, whether the same translates into sustained business growth remains to be seen. The analysis suggests that investors should track whether earnings growth keeps pace with DII expectations and whether companies deliver on their expansion plans. Diamond Power Infrastructure showed exceptional growth with revenue surging 135% YoY to ₹1,031.9 crore and net profit rising 289% YoY to ₹108 crore, though the stock trades at a P/E of 87.04x significantly above the industry median of 23.32x. The report emphasizes that execution and margin improvement will remain key factors to watch alongside elevated valuations.
