Key facts
- Foreign institutional investors increased stakes in high-growth small-cap stocks.
- Backed companies had profit growth above 50% and sales growth exceeding 25%.
- 14 stocks delivered returns of 50% to 225% in the March 2026 quarter.
- Six of these stocks became multibaggers.
Foreign institutional investors are showing a renewed interest in small-cap stocks, particularly those demonstrating strong financial performance. This trend suggests a search for alpha in less-explored market segments, driven by companies with robust profit and sales growth trajectories.