Paradeep Phosphates, TD Power Systems, Whirlpool India among top 5 Midcap stocks attracting strong FII interest

As Indian stock markets continue to swing between gains and corrections in 2025, midcap stocks are quietly becoming a favorite hunting ground for smart investors.

While large-cap indices remain relatively steady, it’s the midcap space that’s catching the eye of foreign institutional investors (FIIs). These global investors are steadily pouring money into carefully chosen midcap companies with strong fundamentals and promising long-term growth prospects.

Tracking where FIIs are increasing their stakes can offer useful signals for domestic and retail investors looking to spot early trends.

Here’s a list of five midcap stocks currently seeing consistent FII buying — not just in the recent March 2025 quarter, but over the past four quarters too.

Prudent Corporate Advisory Services

Founded in 2003, Prudent is one of India’s fastest-growing players in the retail wealth management space. It distributes mutual funds, insurance, stocks, and runs digital platforms like Fundzbazar.

FII holding jumped from 12.9% (June 2023) to 17.6% (March 2025).

Debt-free, 15.9% profit margin, and strong cash flows.

Expanded by acquiring Karvy's mutual fund business and iFast’s portfolio.

Total assets under management (AUM) now stand at ₹1.07 trillion, with 96.7% in equities.

Paradeep Phosphates

One of India’s biggest private fertilizer companies, supplying to over 9 million farmers across 15 states.

FII stake surged from 1.6% (March 2023) to 7.1% (March 2025).

Volumes jumped 70% in FY24, selling over 2.5 million metric tons.

Working on improving low margins (0.84%) through backward integration and capacity expansion.

Merging with Mangalore Chemicals and Fertilizers to unlock further scale.

TD Power Systems

A leading global supplier of AC generators and industrial motors.

FII holding increased from 12.85% to 19.12% in two years.

Profit jumped 37% in the first 9 months of FY25; revenue up 26%.

Strong margins (17.45%) and completely debt-free.

Exports drive 71% of orders, with a record order book of ₹13.1 billion.

Third plant underway in Karnataka for FY26.

Whirlpool of India

The household appliances major is stepping up its game in India.

FII ownership rose from 6.48% to 10.72% over two years.

Zero debt, ₹20 billion in cash and a growing cash flow.

Profit before tax doubled YoY in FY25.

Expanded cooking appliances segment via Elica India (87% stake).

New launches in refrigerators and high-end washing machines.

Endurance Technologies

A top auto component maker catering to both conventional and EV segments.

FII holding rose from 7.79% to 12.37% since March 2023.

Q3 FY25 revenue up 11.3% YoY; PAT up 21%.

Zero debt, ₹5.9 billion operational cash flow, and healthy margins.

New domestic orders worth ₹42.7 billion and EV orders of ₹9.6 billion since FY21.

European business growing, with big orders from Volkswagen and BMW.

Ramping up production capacity and R&D.

Final Thoughts

This growing foreign investor interest in midcap stocks underlines a broader shift. FIIs are increasingly betting on India’s dynamic midcap companies for long-term wealth creation.

The common factors behind this trend:

Strong balance sheets

Rising profitability

Strategic expansions

Consistent operational performance

For Indian retail investors, tracking FII activity in well-run midcaps could uncover early opportunities. But it’s always wise to stay cautious — market cycles, raw material prices, and global economic trends can still influence outcomes.

Invest smart, stay informed.

Disclaimer: This article is for information only and is not a stock recommendation. Always do your own research or consult a financial advisor before investing.