3 Top DII Favourite Stocks to Watch for Future Multibagger Potential: HDFC Bank, BSE and Max Healthcare
- October 19, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HDFC Bank Rs 728.85. BSE Rs 3,363. Max Healthcare Rs 846. Market caps from Rs 83,403 crore to Rs 11.23 lakh crore. Data as of 16 Oct 2026.
Quick Answer
HDFC Bank, BSE and Max Healthcare are the 3 picks in this DII favourite stocks watchlist, with market caps between Rs 83,403 crore and Rs 11.23 lakh crore. HDFC Bank stands out for the lowest PE of the group at 13.61, while BSE offers the highest return on equity at 37.42%. PE ratios run from 13.61 to 57.24, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.
DII favourite stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HDFC Bank, BSE and Max Healthcare meet that test, with market caps from Rs 83,403 crore to Rs 11.23 lakh crore and HDFC Bank offering the lowest PE of the group at 13.61. Domestic institutions, led by mutual funds, raised their stake in each of these companies by more than 7 percentage points in a year.
This list covers large companies where DII holding rose by more than 7 percentage points year on year, with complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening DII favourite stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are DII Favourite Stocks and Why Do They Attract Multibagger Interest?
DII favourite stocks are shares where mutual funds, insurers and other domestic institutions now own a larger part of the company than a year ago. Steady SIP money gives these funds a constant flow to invest in good businesses.
Domestic funds have become a major force in Indian markets, and their buying often goes to companies with clear earnings visibility. Businesses that draw such interest are the ones investors compare in DII favourite stocks.
DII Favourite Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 16 October 2026. HDFC Bank has the lowest PE of the group at 13.61, while BSE posts the highest return on equity at 37.42%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| HDFC Bank | 728.85 | 11,22,628 | 13.61 | 11.94 | 13.14% | 1.87 | 681.90 to 1,020.50 |
| BSE Ltd | 3,363 | 1,39,823 | 49.55 | 42.42 | 37.42% | 20.95 | 2,326.10 to 4,446.80 |
| Max Healthcare Institute | 846 | 83,403 | 57.24 | 60.75 | 13.42% | 7.76 | 842.05 to 1,221.90 |
HDFC Bank: 20.04% Profit CAGR Since FY22
HDFC Bank is India’s largest private sector bank by assets and serves retail, business and corporate customers through a wide branch and digital network. It reported FY26 total income of Rs 4,95,462.81 crore, up 5.21% year on year, and net profit of Rs 79,219.46 crore, up 7.87%. Net profit has compounded at 20.04% a year since FY22, while total income has grown 31.11% a year.
In the September 2026 quarter, total income rose 9.11% to Rs 1,29,358.69 crore and net profit grew 5.76% to Rs 21,537.09 crore. Domestic institutions raised their holding from 36.26% in September 2025 to 43.63% in September 2026. The stock trades at a PE of 13.61 against an industry PE of 11.94, with a return on equity of 13.14%. The dividend yield is 2.13%.
BSE: 78.30% Profit CAGR Since FY22
BSE Ltd operates one of India’s two major stock exchanges and earns from trading, listing, data and clearing services. It reported FY26 revenue of Rs 5,148.10 crore, up 59.07% year on year, and net profit of Rs 2,475.30 crore, up 87.94%. Net profit has compounded at 78.30% a year since FY22, while revenue has grown 56.26% a year. Operating margin was 68.39% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 49.55 against an industry PE of 42.42, with a return on equity of 37.42%. In the June 2026 quarter, revenue rose 63.41% to Rs 1,706.72 crore and net profit grew 62.15% to Rs 872.66 crore. The share price has gained 2101.66% over five years and 37.49% over the past year. Domestic institutions raised their holding from 13.51% in June 2025 to 24.15% in June 2026.
Max Healthcare: 24.26% Profit CAGR Since FY22
Max Healthcare Institute runs a network of multi-speciality hospitals in Delhi NCR, Mumbai and other cities. It reported FY26 revenue of Rs 8,536.07 crore, up 18.82% year on year, and net profit of Rs 1,442.41 crore, up 34.07%. Net profit has compounded at 24.26% a year since FY22, while revenue has grown 20.42% a year. Operating margin was 28.15% in FY26. The debt-to-equity ratio is 0.32.
In the June 2026 quarter, revenue rose 16.60% to Rs 2,406.69 crore and net profit grew 4.87% to Rs 322.96 crore. The share price has gained 149.91% over five years. Domestic institutions raised their holding from 17.42% in June 2025 to 29.96% in June 2026. The stock trades at a PE of 57.24 against an industry PE of 60.75, below the sector average, with a return on equity of 13.42%.
DII Favourite Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these DII favourite stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Total Income (Rs Cr) | Net Profit (Rs Cr) | Income Growth (YoY) | 4-Year Income CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| HDFC Bank | 4,95,462.81 | 79,219.46 | 5.21% | 31.11% | 20.04% |
| BSE | 5,148.10 | 2,475.30 | 59.07% | 56.26% | 78.30% |
| Max Healthcare | 8,536.07 | 1,442.41 | 18.82% | 20.42% | 24.26% |
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Institutional Holding in HDFC Bank, BSE and Max Healthcare
Institutional holding shows who is backing these DII favourite stocks alongside the promoter. The table uses the latest reported quarter for each. HDFC Bank has the deepest institutional backing, with FII and DII together holding 83.03% as of September 2026. Domestic institutions increased their holding over the past year in HDFC Bank (from 36.26% to 43.63%), BSE (from 13.51% to 24.15%) and Max Healthcare (from 17.42% to 29.96%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HDFC Bank | Nil | 39.40% | 43.63% | 16.97% | September 2026 |
| BSE | Nil | 21.32% | 24.15% | 54.53% | June 2026 |
| Max Healthcare | 23.71% | 41.78% | 29.96% | 4.56% | June 2026 |
Risks to Weigh in DII Favourite Stocks
Being careful with DII favourite stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Fund buying can slow if market inflows slow.
- A rise in holding does not guarantee a rise in price.
- Valuation: BSE trades at a PE of 49.55 against an industry PE of 42.42, so earnings need to keep growing to support the price.
- Concentration: Holding all 3 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between DII Favourite Stocks
Picking from DII favourite stocks comes down to four checks, applied in order.
- Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
- Compare each PE with the industry PE (11.94 to 60.75) and ask whether the growth rate justifies any gap.
- Track DII holding, quarterly profit growth and the return on equity in every shareholding update.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among DII favourite stocks, HDFC Bank stands out for the lowest PE of the group at 13.61, BSE for the highest return on equity at 37.42% and Max Healthcare for 18.82% revenue growth in FY26. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing DII favourite stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on DII Favourite Stocks to Watch
Which are the best DII favourite stocks to watch for multibagger potential?
Ans. HDFC Bank, BSE and Max Healthcare are the 3 names this list highlights, with market caps of Rs 11,22,628 crore, Rs 1,39,823 crore and Rs 83,403 crore respectively. HDFC Bank is notable for the lowest PE of the group at 13.61. BSE stands out for the highest return on equity at 37.42%. Max Healthcare offers 18.82% revenue growth in FY26. These are watchlist names for DII favourite stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is BSE a good stock for long-term investors?
Ans. BSE has a return on equity of 37.42%, a PE of 49.55 against an industry PE of 42.42 and a market cap of Rs 1,39,823 crore. Net profit has compounded at 78.30% a year since FY22, and FY26 revenue rose 59.07% while June 2026 quarter net profit grew 62.15%. Long-term returns in DII favourite stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Max Healthcare become a multibagger from here?
Ans. Max Healthcare has already gained 149.91% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in DII favourite stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 24.26% a year since FY22, and FY26 revenue rose 18.82%. At a PE of 57.24 against an industry PE of 60.75, valuation should be checked against that growth before investing.
What is the market cap of HDFC Bank, BSE and Max Healthcare?
Ans. As of 16 October 2026, HDFC Bank has a market cap of Rs 11,22,628 crore, BSE has a market cap of Rs 1,39,823 crore and Max Healthcare has a market cap of Rs 83,403 crore. HDFC Bank is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on DII favourite stocks.
What are the risks of investing in DII favourite stocks?
Ans. The main risks are slower inflows into mutual funds, valuations that already reflect strong demand and a change in market mood. Companies with steady earnings growth handle these better. BSE trades at a PE of 49.55 against an industry PE of 42.42, so earnings growth needs to hold up.
Is HDFC Bank trading below its industry PE?
Ans. HDFC Bank trades at a PE of 13.61 against an industry PE of 11.94. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 20.04% a year since FY22 and FY26 revenue rose 5.21%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in HDFC Bank, BSE and Max Healthcare?
Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 45.47% of BSE (21.32% and 24.15%) and 71.74% of Max Healthcare (41.78% and 29.96%). Rising institutional holding is a useful signal in DII favourite stocks, though it should be read with earnings trends rather than on its own.
