In recent months, while most Indian equities witnessed foreign institutional investors (FIIs) withdrawing capital amid global uncertainties, two mid-cap companies bucked the trend with noticeable FII interest during the quarter ending March 2025. These two stocks are Prudent Corporate Advisory Services Ltd and Shakti Pumps (India) Ltd.

Prudent Corporate Advisory Services Ltd is a diversified retail wealth management company. It offers a broad suite of financial products and services, including Mutual Funds, Life and General Insurance solutions, Equity Broking, SIP with Insurance, Gold Accumulation Plans, Asset Allocation strategies, and Trading Platforms. The company focuses on providing comprehensive investment solutions tailored to individual investors across India.

Shakti Pumps (India) Ltd, on the other hand, is a key player in the pump and motor manufacturing space. It specializes in energy-efficient pumps for a variety of applications, including agricultural irrigation, horticulture, domestic water supply, industrial processes, and commercial buildings. The company is also expanding its footprint in solar-powered and advanced water pumping solutions, aligning with the growing emphasis on sustainable technologies.

FII Holdings See Significant Growth

In Shakti Pumps, FII stake increased from 3.16% to 5.16%, indicating rising confidence in the company’s long-term prospects, especially given its strategic focus on renewable and efficient technologies.
In Prudent Corporate Advisory Services, FII holding rose from 14.77% to 17.63%, reflecting growing institutional interest in India’s retail financial services sector.

Valuation and Investment Outlook

Both stocks appear attractively priced based on their Price-to-Earnings (P/E) ratios, which suggest they may be undervalued relative to their earnings potential. With both having corrected by over 45% from their previous highs, they now present a compelling opportunity for medium to long-term investors.

Technical Analysis

Shakti Pumps: The stock is currently trading below its 50-day moving average (DMA) but continues to find support around its 200DMA, indicating strong long-term support. It remains in a sideways consolidation phase, but a breakout above ₹980 could trigger a strong upside move. Accumulation near ₹820 may offer a favorable entry point for investors with a medium-term horizon.

Prudent Corporate Advisory Services: Technically stronger, the stock is trading above both its 50DMA and 200DMA. The daily chart shows a pattern of higher highs, signaling bullish momentum. A sustained move above ₹2,550 could lead to a breakout rally toward its previous highs.

Given their recent FII accumulation, strong fundamentals, and promising technical setups, both Shakti Pumps and Prudent Corporate Advisory Services merit close attention from investors looking for medium to long-term opportunities in quality mid-cap stocks. These companies are not only backed by growing industry trends but also appear to be well-positioned for future growth.