Big switch: Institutional investors snap up stocks retail investors are exiting

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Subscribe to enjoy similar stories. Have you ever noticed how the heavyweights in the investing world seem to be snapping up shares of certain companies just when individual investors are selling them off? It's like watching a plot twist in the financial markets! Institutional investors, such as foreign institutional investors (FIIs) and domestic institutional investors (DIIs), often have access to in-depth research and resources that most retail investors don't. Their moves can hint at underlying strengths in a company that might not be immediately visible.

Let us take a look at the companies where FIIs and DIIs are increasing their stakes while retail investors are pulling back. What's catching the eye of these big players, and should you be paying attention too? Britannia Industries has strengthened its position as one of India's top food companies through a century of operation. Known for its commitment to quality, the company offers a wide range of products, including biscuits, bread, cakes, rusk, and dairy items, making it a staple in Indian households.

Investment Activity (2021 to present): ⦁ FIIs: Stake largely constant. ⦁ DIIs: Increased holdings from 11.5% to 16.3%. ⦁ Retail investors: Reduced stake from 20.3% to 15.1%.

Britannia has achieved a compounded annual growth rate (CAGR) of about 13% over the last five years. Britannia Industries Share Price Chart (Nov ‘19 till Oct ‘24) Institutional investors are particularly drawn to Britannia Industries because of its impressive performance over the past five years. Britannia's sales have soared from ₹11,055 crore in March 2019 to ₹16,769 crore by March 2024, marking a robust 52% absolute growth and a compounded annual growth rate (CAGR) of about 9%.