2 Stocks Seeing Heavy FII And DII Buying in Q2 2025
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Discover two stocks witnessing heavy FII and DII buying in Q2 2025. Explore their fundamentals, institutional activity, and growth outlook to see if they deserve a place in your portfolio.
Big Money Moves: 2 Stocks With Heavy FII and DII Buying Up
The stock market is often filled with noise, but when both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) increase their holdings simultaneously, it reflects more than just short-term price action — it shows a sentiment shift. In Q2 2025, two stocks witnessed heavy FII and DII buying. Let’s break down what’s driving this interest (heavy FII and DII buying) and whether the fundamentals support the move.
1. Zinka Logistics Solutions Ltd – Digital Disruption in Trucking
Zinka Logistics Solutions Ltd is India’s largest digital platform for truck operators, offering end-to-end logistics services including:
- Digital tolling & fuel payment solutions
- Telematics-based fleet monitoring
- Vehicle financing via its NBFC subsidiary Black Buck Finrf
Revenue Mix:
- Core businesses (Tolling & Telematics): 85%
- Growth verticals (Vehicle financing, Load marketplace, Fuel sensors): 15%
Institutional Buying Spike
From March to July 2025:
- FII holding jumped from 11.59% to 20.52%
- DII holding increased from 10.26% to 13.48%
This kind of buying ( or heavy FII and DII buying) signals strong institutional confidence in the company’s growth potential.
Financial Performance Highlights (FY25):
- Revenue: ₹426 crore (43.9% YoY growth in tolling & telematics)
- Transacting customers: +21% YoY, multi-service users: +31.2%
- Market share: Tolling business rose from 37% to 45.5%
Profitability Shift:
- Operating Expenses: Down 27.2% to ₹331 crore
- Employee Cost: Nearly halved to ₹147 crore
- Operating Profit: ₹95 crore (OPM improved from -53.7% to 22.3%)
- Net Loss Reduced: 95% YoY improvement due to tax credits and discontinued operations
Growth Outlook & Drivers:
- ₹15 lakh crore freight market growing at 8–9% CAGR
- 7.2 lakh truck operators already onboarded (20% market coverage)
- Strong cross-selling potential in tolling, fuel, telematics, and financing
- New ICAT-certified telematics hardware and PPI license for direct Fastag issuance
Risks:
- Tolling and telematics growth slowing down
- Execution challenges in scaling the load marketplace
- OEMs building in-house telematics ecosystems
2. Marathon Nexgen Realty – Real Estate Play
Marathon Nexgen Realty (MNLR) is a Mumbai-based real estate developer with a diversified portfolio including luxury housing, affordable homes, townships, retail, and commercial projects.
Institutional Buying Surge (or heavy FII and DII buying ) :
- FII holding jumped from 0.94% to 9.9% (June–July 2025)
- DII holding increased to 16.66%
Financial Performance (FY25):
- Sales: ₹580 crore (-17.7% YoY due to 24% drop in area sold)
- Operating Profit: ₹173 crore (-26% YoY, OPM 29.8%)
- Other Income: +134% (₹96 crore from property sale & capital gains)
- Net Profit: ₹191 crore (+13% YoY)
- Interest Cost: -35% (debt reduced by ₹200 crore)
Key Developments:
- Composite scheme of amalgamation to simplify group structure
- ₹900 crore raised through QIP for future expansion
- Focus on affordable & mid-income housing (⅓ of upcoming projects)
- Large unsold inventory (1.6 lakh sq ft) with ₹2,500 crore+ value pipeline
Balance Sheet & Cash Flow:
- Net debt reduced significantly (net debt-to-equity improved to 4x)
- Concern: Company loans to related parties = 2.16x its own borrowings (100% unsecured)
- CFO: Negative ₹25 crore (vs. ₹22 crore positive last year) → weak cash flow efficiency
Strengths & Risks:
- Strengths: Strong ROCE (15.1%) & ROE (17.09%) vs. industry median (8.23%, 6.43%)
- Risks: Mumbai-only project concentration, high lending risk, negative CFO to PAT ratio
Final Thoughts
The recent spike in institutional holdings of Zinka Logistics and Marathon Nexgen Realty highlights growing confidence from FIIs and DIIs. While both companies are strategically well-placed in their respective industries, there are risks — Zinka faces execution challenges in scaling new verticals, while Marathon Nexgen Realty must improve cash flow efficiency and reduce lending risks.
For investors, these stocks may present long-term potential if fundamentals continue to improve. However, due diligence is critical, and one must track quarterly performance closely.
Disclaimer:
This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Please consult a qualified financial advisor before investing.
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