4 Midcap Institutional Favourite Stocks to Watch for Future Multibagger Potential: Federal Bank, NHPC, Radico Khaitan and Mphasis
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Federal Bank Rs 340.90. NHPC Rs 69.84. Radico Khaitan Rs 4,157.30. Mphasis Rs 2,480. Market caps from Rs 46,512 crore to Rs 81,680 crore. Data as of 23 Oct 2026.
Quick Answer
Federal Bank, NHPC, Radico Khaitan and Mphasis are the 4 picks in this institutional favourite stocks watchlist, with market caps between Rs 46,512 crore and Rs 81,680 crore. Federal Bank stands out for the lowest PE of the group at 15.16, while NHPC offers 9.23% revenue growth in FY26. PE ratios run from 15.16 to 83.06, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
Institutional favourite stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Federal Bank, NHPC, Radico Khaitan and Mphasis meet that test, with market caps from Rs 46,512 crore to Rs 81,680 crore and Federal Bank offering the lowest PE of the group at 15.16. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a rise of at least 0.5 percentage point in both foreign and domestic institutional holding over the past year, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a rise of at least 0.5 percentage point in both foreign and domestic institutional holding over the past year, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening institutional favourite stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Institutional Favourite Stocks and Why Do They Attract Multibagger Interest?
Institutional favourite stocks are shares of mid sized companies where both foreign and domestic institutions have raised their stakes over the past year, a rare sign of agreement among large investors. The four here cover private banking, hydropower, spirits and IT services.
When foreign and domestic funds both add to a stock, it signals broad confidence in the business. For institutional favourite stocks, both FY26 and the latest quarter showed growth. With institutional favourite stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for institutional favourite stocks are complete. Read each company’s latest results and exchange filings before acting on institutional favourite stocks.
Institutional Favourite Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 23 October 2026. Federal Bank has the lowest PE of the group at 15.16, while Radico Khaitan posts the highest return on equity at 18.23%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Federal Bank | 340.90 | 81,680 | 15.16 | 11.94 | 12.60% | 1.98 | 211.52 to 371.70 |
| NHPC | 69.84 | 70,349 | 16.48 | 22.18 | 9.09% | 1.70 | 69.84 to 87.81 |
| Radico Khaitan | 4,157.30 | 58,439 | 83.06 | 54.95 | 18.23% | 17.63 | 2,500.00 to 4,747.00 |
| Mphasis | 2,480 | 46,512 | 24.35 | 18.49 | 17.34% | 4.33 | 2,013.00 to 2,975.00 |
Federal Bank: 22.90% Profit CAGR Since FY22
Federal Bank is a Kerala-based private sector bank with a strong NRI deposit base and a growing retail, small business and digital franchise. It reported FY26 total income of Rs 34,272.42 crore, up 7.00% year on year, and net profit of Rs 4,483.38 crore, up 6.71%. Net profit has compounded at 22.90% a year since FY22, while total income has grown 20.05% a year.
In the September 2026 quarter, total income rose 19.01% to Rs 9,903.41 crore and net profit grew 53.42% to Rs 1,564.06 crore. The share price has gained 259.57% over five years and 57.58% over the past year. Domestic institutions raised their holding from 48.17% in June 2025 to 49.28% in June 2026. The stock trades at a PE of 15.16 against an industry PE of 11.94, with a return on equity of 12.60%.
NHPC: Five-Year Gain of 104.08%
NHPC is a government-owned hydropower company that is also adding solar and wind capacity. It reported FY26 revenue of Rs 12,686.09 crore, up 9.23% year on year, and net profit of Rs 3,237.10 crore, up 3.28%. Revenue has compounded at 5.84% a year since FY22. Operating margin was 62.61% in FY26.
The stock trades at a PE of 16.48 against an industry PE of 22.18, below the sector average. The dividend yield is 2.30%. In the June 2026 quarter, revenue rose 15.02% to Rs 3,959.72 crore and net profit grew 4.15% to Rs 1,178.09 crore. The share price has gained 104.08% over five years. Domestic institutions raised their holding from 10.55% in September 2025 to 14.27% in September 2026.
Radico Khaitan: 24.88% Profit CAGR Since FY22
Radico Khaitan makes Indian-made foreign liquor and premium spirits, with brands including Magic Moments, 8PM and Rampur Single Malt. It reported FY26 revenue of Rs 6,062.27 crore, up 24.84% year on year, and net profit of Rs 604.48 crore, up 74.90%. Net profit has compounded at 24.88% a year since FY22, while revenue has grown 20.50% a year. Operating margin was 4.88% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.
In the June 2026 quarter, revenue rose 10.44% to Rs 5,869.46 crore and net profit grew 75.91% to Rs 229.60 crore. The share price has gained 299.58% over five years and 51.47% over the past year. Domestic institutions raised their holding from 25.47% in September 2025 to 27.17% in September 2026. The stock trades at a PE of 83.06 against an industry PE of 54.95, with a return on equity of 18.23%.
Mphasis: Profit Compounding at 6.81% a Year
Mphasis provides IT, cloud and application services to banking, insurance and technology clients. It reported FY26 revenue of Rs 16,205.54 crore, up 11.88% year on year, and net profit of Rs 1,862.60 crore, up 9.43%. Net profit has compounded at 6.81% a year since FY22, while revenue has grown 7.53% a year. Operating margin was 20.58% in FY26. The debt-to-equity ratio is 0.24.
The stock trades at a PE of 24.35 against an industry PE of 18.49, with a return on equity of 17.34%. The dividend yield is 2.54%. In the June 2026 quarter, revenue rose 17.14% to Rs 4,466.91 crore and net profit grew 10.82% to Rs 489.51 crore. Domestic institutions raised their holding from 37.07% in September 2025 to 45.85% in September 2026.
Institutional Favourite Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these institutional 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 | Latest Quarter Income Growth |
|---|---|---|---|---|---|
| Federal Bank | 34,272.42 | 4,483.38 | 7.00% | 20.05% | 19.01% |
| NHPC | 12,686.09 | 3,237.10 | 9.23% | 5.84% | 15.02% |
| Radico Khaitan | 6,062.27 | 604.48 | 24.84% | 20.50% | 10.44% |
| Mphasis | 16,205.54 | 1,862.60 | 11.88% | 7.53% | 17.14% |
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Institutional Holding in Federal Bank, NHPC, Radico Khaitan and Mphasis
Institutional holding shows who is backing these institutional favourite stocks alongside the promoter. The table uses the latest reported quarter for each. Federal Bank has the deepest institutional backing, with FII and DII together holding 76.99% as of June 2026. Domestic institutions increased their holding over the past year in Federal Bank (from 48.17% to 49.28%), NHPC (from 10.55% to 14.27%), Radico Khaitan (from 25.47% to 27.17%) and Mphasis (from 37.07% to 45.85%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Federal Bank | Nil | 27.71% | 49.28% | 23.01% | June 2026 |
| NHPC | 61.39% | 13.17% | 14.27% | 11.17% | September 2026 |
| Radico Khaitan | 40.17% | 19.43% | 27.17% | 13.23% | September 2026 |
| Mphasis | 30.53% | 19.39% | 45.85% | 4.23% | September 2026 |
Risks to Weigh in Institutional Favourite Stocks
Being careful with institutional favourite stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Radico Khaitan trades at a PE of 83.06 against an industry PE of 54.95, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Institutional Favourite Stocks
Picking from institutional 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 54.95) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among institutional favourite stocks, Federal Bank stands out for the lowest PE of the group at 15.16, NHPC for 9.23% revenue growth in FY26, Radico Khaitan for the highest return on equity at 18.23% and Mphasis for 11.88% 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 institutional 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 Institutional Favourite Stocks to Watch
Which are the best institutional favourite stocks to watch for multibagger potential?
Ans. Federal Bank, NHPC, Radico Khaitan and Mphasis are the 4 names this list highlights, with market caps of Rs 81,680 crore, Rs 70,349 crore, Rs 58,439 crore and Rs 46,512 crore respectively. Federal Bank is notable for the lowest PE of the group at 15.16. NHPC stands out for 9.23% revenue growth in FY26. Radico Khaitan offers the highest return on equity at 18.23%. Mphasis brings 11.88% revenue growth in FY26. These are watchlist names for institutional favourite stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Radico Khaitan a good stock for long-term investors?
Ans. Radico Khaitan has a return on equity of 18.23%, a PE of 83.06 against an industry PE of 54.95 and a market cap of Rs 58,439 crore. Net profit has compounded at 24.88% a year since FY22, and FY26 revenue rose 24.84% while June 2026 quarter net profit grew 75.91%. Long-term returns in institutional favourite stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Federal Bank become a multibagger from here?
Ans. Federal Bank has already gained 259.57% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in institutional favourite stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 22.90% a year since FY22, and FY26 revenue rose 7.00%. At a PE of 15.16 against an industry PE of 11.94, valuation should be checked against that growth before investing.
What is the market cap of Federal Bank, NHPC, Radico Khaitan and Mphasis?
Ans. As of 23 October 2026, Federal Bank has a market cap of Rs 81,680 crore, NHPC has a market cap of Rs 70,349 crore, Radico Khaitan has a market cap of Rs 58,439 crore and Mphasis has a market cap of Rs 46,512 crore. All of them qualify as midcaps. 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 institutional favourite stocks.
What are the risks of investing in institutional favourite stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Radico Khaitan trades at a PE of 83.06 against an industry PE of 54.95, so earnings growth needs to hold up.
Why is Radico Khaitan trading at a PE of 83.06?
Ans. Radico Khaitan’s PE of 83.06 compares with an industry PE of 54.95. The market is paying a premium for a return on equity of 18.23%, profit growth of 24.88% a year since FY22 and latest-quarter profit growth of 75.91%, which also means the stock is more sensitive if growth slows. Investors in institutional favourite stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Federal Bank, NHPC, Radico Khaitan and Mphasis?
Ans. As of the latest reported quarter, FII and DII together hold 76.99% of Federal Bank (27.71% and 49.28%), 27.44% of NHPC (13.17% and 14.27%), 46.60% of Radico Khaitan (19.43% and 27.17%) and 65.24% of Mphasis (19.39% and 45.85%). Rising institutional holding is a useful signal in institutional favourite stocks, though it should be read with earnings trends rather than on its own.
