From packaging to defence: 3 stocks with FII stake hikes of up to 9.63 percentage points

In our previous article, we explored FII stake increases in retail stocks, and today, we will explore industrial products companies that stood out on the shareholding screen. As always, we apply an additional filter where only companies withg a market capitalisation of over Rs 5,000 crore are considered. We zeroed in on three stocks. Now let’s dig into the financial performance, business expansion, and growth plans of these companies to understand what made FIIs raise their stake in them while at the same time being active sellers of capital goods stocks.

FE Stock Insights on WhatsApPGet instant alerts on high-conviction investment themes and fundamental deep dives—direct from Financial Express.Join now #1 EPL: FIIs Raise Stake By 9.63 Percentage Points To 23.7% EPL Ltd. is the world’s largest specialty packaging company, which manufactures and supplies laminated plastic tubes for beauty, cosmetics, and pharmaceutical companies. Currently, the company operates 21 manufacturing facilities across 11 countries and supplies over 9 billion tubes every year.

FIIs raised their stake in EPL by 9.63 percentage points during the July-September quarter, taking the total holding to 23.7% at the end of the quarter. Among the top FIIs, the Public Sector Pension Investment Board bought a 1.1% stake in the company, while Abu Dhabi Investment Authority – Stable and Its Affiliates bought a 1.05% stake during the quarter. Personal Care Grows 25.1% As Sustainable Tubes Gain Share.

During the April-June quarter, personal care and beyond accounted for 54% of the total tube revenue, growing 25.1% YoY. Beauty and cosmetics revenue also grew 23.6% during the period, mainly driven by strong momentum across all regions. The company also witnessed sustainable tubes contributing to 44% of the total product mix, up from 38% in FY26. EPL is investing in extrusion and printing lines, new tooling, and specialised capabilities to support its business.

For the proposed merger with Indovida, announced in March 2026, EPL received the Competition Commission of India’s approval in May. The company expects to complete the merger in the fourth quarter of FY27, subject to the remaining approvals. Revenue Rises 25.3%, But EBITDA Margin Narrows Consolidated revenue of the company rose 25.3% YoY to Rs 1,387.9 crore in the April-June quarter from Rs 1,107.9 crore a year ago.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 15.2% to Rs 261.2 crore from Rs 226.8 crore during the period. However, the EBITDA margin narrowed to 18.8%, from 20.5% a year ago, reflecting that operating profit grew at a slower pace than revenue. Net profit also declined 1.4% to Rs 98.6 crore from Rs 100 crore a year ago. FIIs raising stake despite profit falling perhaps indicates the long-term growth potential of the business.

ROCE of 17.8% Beats Peer Median of 12.92% The return on capital employed (ROCE) of the company stood at 17.8%, which is above the industry median of 12.92%, reflecting better capital efficiency of the business. The debt-to-equity (D/E) ratio of 0.34x is also below the industry median of 0.42x, indicating lower leverage than the peers. PE Near Peer Median, But PEG Is Higher The stock is trading at a price/earnings (PE) ratio of 17.41x, slightly below the industry median of 17.71x.

However, its price/earnings to growth (PEG) ratio of 0.77x is higher than the industry median of 0.20x, indicating that the stock is relatively overpriced even if the growth is adjusted. 1-Year Share Price Chart of EPL Ltd. #2 Welspun Corp: FIIs Raise Stake By 8.48 Percentage Points To 23.09% Welspun Corp is a leading manufacturer of large-diameter line pipes which are used across oil and gas transportation.

Apart from that, the company manufactures ductile iron pipes, water storage solutions under Sintex, and stainless-steel bars and pipes through Welspun Specialty Solutions. The company has a global manufacturing footprint and exposure to infrastructure spending across the US, Saudi Arabia, and India, supporting its growth plans. FIIs increased their stake in Welspun Corp by 8.48 percentage points during the July-September quarter, taking their total holding to 23.09% at the end of the quarter.

raised its holding from 1.48% in Q1FY27 to 3.06% in Q2FY27, while New World Fund Inc. and Eupac Fund bought 1.29% and 1.12% stakes, respectively, during the quarter. US And Saudi Expansion To Add To Pipeline Capacity Welspun Corp is expanding its manufacturing footprint in the US and Saudi Arabia, with both projects on track for commissioning within FY27. The US facility is expected to benefit from demand linked to liquefied natural gas exports and gas pipelines serving data centres.

The company said its US business is booked through FY28, with discussions for FY29 projects already underway. Meanwhile, the company is shifting more of its ductile iron pipe business towards exports and pig iron to manage muted domestic demand and funding constraints under the Jal Jeevan Mission. Rs 24,660 Crore In Orders Won Since July, Including US Data Centre Pipeline Deal Welspun Corp secured five major orders between July and October 2026, further strengthening the global order book of the company, which already stood at Rs 24,750 crore as on 30 June 2026.

In July, the company won a Rs 960 crore order for coated line pipes from its US facility. In August, it secured its largest-ever single order, worth Rs 17,200 crore, for pipe supplies from the US. During September, the company won two orders, which included a Rs 4,000 crore order for high-frequency induction welded pipes from its upgraded US facility, and a contract worth around Rs 2,000 crore, including VAT, secured by its Saudi associate, East Pipes, from Saudi Aramco for steel pipe manufacturing and supply.

The latest win came in October, which is a Rs 5,500 crore order for coated line pipes for a natural gas pipeline in the US’s Permian region that will serve a data centre complex. The US orders are scheduled for execution across FY28 and FY29, while the October order is due for execution in FY29. These five orders took the total global order book to its all-time high of around Rs 50,000 crore as of 27 October 2026.

EBITDA Rises 35% As Margins Expand Consolidated revenue rose 15% YoY to Rs 4,081 crore in Q1 FY27 from Rs 3,551 crore a year ago. EBITDA increased 35% YoY to Rs 756 crore from Rs 560 crore during the period. EBITDA margin also expanded to 18.5% from 15.8%. Net profit increased to Rs 1,046 crore from Rs 350 crore during the period, logging a 199% YoY growth, including a one-time gain of Rs 548 crore from the partial sale of its stake in East Pipes Integrated Company for Industry in Saudi Arabia; while excluding exceptional items, the profit grew 42% to Rs 499 crore.

ROCE of 22.89% Beats Peer Median ROCE stood at 22.89%, significantly above the industry median of 13.31%, indicating Welspun Corp’s better capital efficiency, while the D/E ratio of 0.26x is almost at par with the industry median of 0.27x. PEG Below Median, But PE Is Higher The stock is trading at a P/E ratio of 28.26x, above the industry median of 21.43x. However, its PEG ratio of 0.24x is below the median of 0.69x, indicating the stock can be relatively undervalued if adjusted for growth. 1-Year Share Price Chart of Welspun Corp #3 PTC Industries: FIIs Raise Stake By 4.44 Percentage Points To 8.39% PTC Industries Ltd. is an advanced engineering company with over six decades of experience in manufacturing precision metal components and strategic materials for critical applications.

Through its wholly owned subsidiary, Aerolloy Technologies, the company manufactures titanium and superalloy castings and materials for aerospace and defence applications. FIIs raised their stake in PTC Industries by 4.44 percentage points during the July-September quarter, taking their total holding to 8.39% at the end of the quarter. Smallcap World Fund Inc. emerged as one of the top foreign investors, buying a 1.04% stake in the company during the quarter.

Airbus, Safran Agreements Expand Aerospace Opportunities PTC Industries is expanding its presence in global aerospace supply chains through Aerolloy Technologies. The subsidiary signed an agreement with Airbus for the development, qualification, industrialisation, and future supply of titanium castings for the A320neo, A330neo, and A350 aircraft programmes. In October, Aerolloy was selected by Safran Aircraft Engines to develop and manufacture critical titanium castings for the LEAP engine programme.

The two companies also signed a memorandum of understanding establishing a framework for long-term production supply, subject to successful development and qualification; however, the order value was not disclosed. BrahMos, DRDO Orders Expand Defence Manufacturing PTC Industries received an order from BrahMos Aerospace for the development, integration, and supply of a strategic missile sub-system.

The company also received a design and development order from the Armament Research and Development Establishment under DRDO for a titanium cradle for the 105mm Indian Light Weight Tank. Separately, Gun Factory Kanpur placed a development order for two major artillery gun components. These programmes expand the company’s role beyond precision manufacturing into design-led development and systems and sub-systems integration for defence applications.

Revenue Rises 83%, EBITDA Margin Expands To 27.5% Consolidated total income rose 83% YoY to Rs 197.1 crore in the April-June quarter from Rs 107.7 crore a year ago. EBITDA surged 180.1% to Rs 54.2 crore from Rs 19.4 crore during the period. The EBITDA margin expanded to 27.5% from 18% a year earlier. PAT rose 466.2% to Rs 29.2 crore from Rs 5.2 crore, along with PAT margin expanding significantly to 14.8% from 4.8% a year ago.

59% Trails Peer Median Though the company had a strong quarter, the ROCE stood at 8.59%, below the industry median of 15.52%, indicating lower capital efficiency than its peers, while the D/E ratio of 0.17x was at par with the industry median. Already Trading At A Premium? The stock is trading at a P/E ratio of 302.87x, significantly above the industry median of 27.21x. Even the PEG ratio of 5.13x is also higher than the peer median of 0.93x, indicating the stock is relatively overvalued compared to its peers, even if growth is adjusted. 1-Year Share Price Chart of PTC Industries Ltd.

What Investors Should Watch Next FIIs raising their stakes in these three companies during the July-September quarter might reflect increased foreign investor interest in these businesses and the overall sector; however, investors need to track whether business expansion, new orders, and growing demand translate into sustained earnings growth. They also need to watch margins, capital efficiency, and valuations to assess whether the growth prospects justify the investment.

Add these stocks to your watchlist as their expansion plans and earnings momentum unfold. Disclaimer We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions.

It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only. Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible. Disclosure: The writer and her dependents do not hold the stocks discussed in this article.

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