Investors like FIIs and DIIs play a pivotal role in shaping the market. Often retail investors follow the path of such investors. As FIIs and DIIs are perceived to be experts in stock picking in general, their moves might indicate some opportunities that need to be explored.

And when both FIIs and DIIs focus on the same stocks, then, perhaps, the need to explore the opportunity is only greater.

For instance, during Q1FY26, FIIs and DIIs came together to invest in two stocks. While FIIs increased holdings in both stocks by over 5% points, DIIs raised their stakes close to 15% points.

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In this article, we will try to understand what actually drove both FIIs and DIIs to pour money into these two stocks in such an overwhelming manner.

#1 Marathon Nextgen Realty Limited (MARATHON)

Marathon Nextgen Realty Ltd. is into the construction, development, and sale of both residential and commercial properties. The company offers luxury properties as well as affordable residential properties to suit different customers’ budgets and preferences. From townships to residential properties, Special Economic Zone development projects, and infrastructure development projects, Marathon Nextgen engages in all kinds of projects.

During Q1FY26, FIIs increased their stake by 7.62% points, taking the total holding to 9.9%. DIIs also increased their stake by 14.23% points, taking the total holding to 16.66%.

Unlocking Future Value

One of the probable reasons why this stock is under the radar of both FIIs and DIIs can be its exponential growth prospects. The company has ongoing projects which comprise –

  • Affordable housing projects of 8,11,380 square feet
  • Premium & Luxury Housing Projects spanning over 7,33,222 square feet
  • Office space and commercial projects of 1,79,440 square feet
  • Retail space projects of around 19,110 square feet

Apart from the ongoing projects, the company already has massive projects in the pipeline that are coming up. These include

  • Affordable housing projects of 18,94,448 square feet
  • Premium & Luxury Housing Projects of 4,00,000 square feet
  • Office space and commercial projects of 8,75,000 square feet

Marathon Nextgen is one of the top-selling developers in the micro market of Maharashtra with over 400 acres of land in its possession. These land parcels are across Panvel, Dombivili, and Bhandup. The company’s management expects these strategically acquired lands to help them unlock long-term growth.

Robust Business Growth

The solid business growth during Q1FY26 is perhaps another reason for FIIs and DIIs coming together for this stock so strongly. During the quarter, the company sold a total area of 77,759 square feet, compared to 72,912 square feet sold during Q1FY25.

The booking value also went up from ₹158 crore in Q1FY25 to ₹186 crore in Q1FY26. The collections also went up from ₹186 crore to ₹239 crore during the same period.

Interesting financials

Even though the sale of the company went up according to the area sold during the Q1FY26, the sale value dipped 13.2% from ₹162 crore generated during Q1FY25 to ₹141 crore of Q1FY26. Despite the fall in the sale value, the net profit went up from ₹38 crore in Q1FY25 to ₹62 crore in Q1FY26, which is a whopping 62% growth. This also increased the earnings per share (EPS) from ₹7.22 in Q1FY25 to ₹11.69 in Q1FY26.

Eye-catching Valuations?

This company is trading at a Price Earnings (PE) ratio of 20.8x, which is half of the industry median of 40.8x. Even the Price Earnings to Growth (PEG) ratio is at 0.30, significantly lower than the industry median of 0.45.

Year-To-Date Price Chart

#2 Vishal Mega Mart Limited (VMM) 

Vishal Mega Mart Ltd. is a hypermarket chain selling everything a household requires, from daily groceries to apparel and electronics. It is one of the top three offline-first diversified retailers in India. Vishal Mega Mart has 717 stores (as of 30 June 2025) in 472 different cities in India, especially targeting the middle-income group and lower-middle-income group of people, which constitute around 66% of the Indian household population.

The FIIs increased their stakes by 5.82% points in this company during the Q1FY26, taking the total holding to 12.85%, while the DIIs raised their stake by 15.09% points, and the total holding they have now is 27.31% in the company.

So, what is driving FIIs and especially DIIs to invest in this stock at such a breathtaking pace?

Growing Market of Own Products & Fueling Expansion

One of the fortes of Vishal Mega Mart is its own products. The company is expanding its product base and limiting the sale of third-party products. During Q1FY25, 74.1% of the sales were generated from own products; now in Q1FY26, this share increased to 75.8%.

Selling your own products is generally associated with better cost control, margins and even competitiveness.

During the quarter, the company added 23 more stores to its kitty, after adding 90 stores in the last fiscal. The company witnessed a healthy 17% growth in its loyal customer base during the quarter as well, taking the total count to around 15 crores.

As per management commentary, the company is now targeting the small towns with a population of less than 50,000. In these towns, they are developing smaller format stores; however, all the products will be available in these stores.

Management also commented that the increasing profit margins will be invested back into the business for growth. They expect their earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to improve owing to operating leverage.

Rock Solid Financials

During Q1FY26, the sales of the company surged to ₹3,140 crore, from Q1FY25’s ₹2,596 crore, registering a significant 20.9% rise. The net profit surged from ₹150 crore in Q1FY25 to ₹206 crore in Q1FY26, growing at 37% Year-on-Year (YoY).

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Premium Valuation

The stock is trading at a premium with a PE of 100.7x, while the industry median is 73.2x. The PEG ratio, however, is lower at 2.14 while the industry median is 2.54, indicating room for growth.

Year-To-Date Price Chart

Wrapping up

FIIs and DIIs investing in the same stocks can be more than just a coincidence. Both the stocks mentioned above have been expanding their horizons, with rock-solid fundamentals, and these might have caught the eyes of both FIIs and DIIs. However, it will be interesting to see how long this alignment of FIIs and DIIs lasts, given the ever-changing dynamics of the market.

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. 

The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.