4 Smallcap DII Backed High Margin Stocks to Watch for Future Multibagger Potential: CESC, CAMS, Metropolis and Kirloskar Pneumatic
- November 2, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
CESC Rs 124.63. CAMS Rs 653.60. Metropolis Rs 545.65. Kirloskar Pneumatic Rs 538.45. Market caps from Rs 7,251 crore to Rs 17,276 crore. Data as of 30 Oct 2026.
Quick Answer
CESC, CAMS, Metropolis and Kirloskar Pneumatic are the 4 picks in this DII backed high margin stocks watchlist, with market caps between Rs 7,251 crore and Rs 17,276 crore. CESC stands out for the lowest PE of the group at 10.60, while CAMS offers the highest return on equity at 36.04%. PE ratios run from 10.60 to 56.34, so compare each one with its industry PE before investing. All figures are as of 30 October 2026.
DII backed high margin stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. CESC, CAMS, Metropolis and Kirloskar Pneumatic meet that test, with market caps from Rs 7,251 crore to Rs 17,276 crore and CESC offering the lowest PE of the group at 10.60. Each of these companies has a market capitalisation below Rs 30,000 crore and a domestic institutional holding of at least 20 per cent and an operating margin of at least 20 per cent, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation below Rs 30,000 crore and a domestic institutional holding of at least 20 per cent and an operating margin of at least 20 per cent, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening DII backed high margin stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 30 October 2026 and are drawn from NSE and BSE data and company filings.
Click Here – Get Free Investment Predictions
What Are DII Backed High Margin Stocks and Why Do They Attract Multibagger Interest?
DII backed high margin stocks are shares of smaller companies in which domestic funds, insurers and mutual funds together own at least twenty per cent of the business and which keep at least twenty paise of operating profit from every rupee of sales. The four here cover power distribution, mutual fund services, diagnostics and compressors.
Domestic funds invest money from Indian savers and study companies in depth, so a large DII stake in a company with a high margin shows steady local trust in its pricing power. For DII backed high margin stocks, both FY26 and the latest quarter showed growth. For DII backed high margin stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of DII backed high margin stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for DII backed high margin stocks before you decide.
DII Backed High Margin Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 30 October 2026. CESC has the lowest PE of the group at 10.60, while CAMS posts the highest return on equity at 36.04%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| CESC | 124.63 | 17,276 | 10.60 | 22.18 | 12.31% | 1.73 | 123.45 to 204.50 |
| Computer Age Management Services | 653.60 | 16,623 | 33.85 | 42.45 | 36.04% | 0.05 | 611.40 to 844.90 |
| Metropolis Healthcare | 545.65 | 11,431 | 56.34 | 60.75 | 12.56% | 0.15 | 453.50 to 733.00 |
| Kirloskar Pneumatic Company | 538.45 | 7,251 | 27.66 | 44.99 | 20.51% | 0.00 | 495.05 to 1,098.55 |
CESC: Profit Compounding at 3.60% a Year
CESC generates and distributes power, with a distribution licence area in Kolkata, and is growing its renewable portfolio. It reported FY26 revenue of Rs 18,927.29 crore, up 8.93% year on year, and net profit of Rs 1,617.57 crore, up 13.20%. Revenue has compounded at 10.22% a year since FY22. Operating margin was 26.27% in FY26.
In the June 2026 quarter, revenue rose 5.18% to Rs 5,559 crore and net profit grew 3.71% to Rs 419 crore. Domestic institutions raised their holding from 25.38% in June 2025 to 26.14% in June 2026. The stock trades at a PE of 10.60 against an industry PE of 22.18, below the sector average, with a return on equity of 12.31%. The dividend yield is 4.63%.
CAMS: Return on Equity of 36.04%
CAMS is the registrar and transfer agent for a large share of the Indian mutual fund industry. It reported FY26 revenue of Rs 1,567.42 crore, up 6.26% year on year, and net profit of Rs 472.02 crore, up 1.58%. Net profit has compounded at 13.25% a year since FY22, while revenue has grown 14.03% a year. Operating margin was 48.43% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.
The stock trades at a PE of 33.85 against an industry PE of 42.45, below the sector average, with a return on equity of 36.04%. The dividend yield is 1.86%. In the June 2026 quarter, revenue rose 12.06% to Rs 411.61 crore and net profit grew 17.64% to Rs 127.10 crore. Domestic institutions raised their holding from 17.31% in June 2025 to 23.54% in June 2026.
Metropolis: Revenue Up 24.15% in FY26
Metropolis Healthcare provides pathology and diagnostic services through a network of laboratories, clinical labs and collection centres. It reported FY26 revenue of Rs 1,671.43 crore, up 24.15% year on year, and net profit of Rs 191.18 crore, up 31.39%. Revenue has compounded at 7.62% a year since FY22. Operating margin was 25.63% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.
In the June 2026 quarter, revenue rose 15.69% to Rs 455.32 crore and net profit grew 25.70% to Rs 56.88 crore. Domestic institutions raised their holding from 32.40% in June 2025 to 35.12% in June 2026. The stock trades at a PE of 56.34 against an industry PE of 60.75, below the sector average, with a return on equity of 12.56%.
Kirloskar Pneumatic: Return on Equity of 20.51%
Kirloskar Pneumatic makes compressors, gas and process equipment and refrigeration systems for energy, industry and infrastructure customers. It reported FY26 revenue of Rs 1,814.46 crore, up 9.15% year on year, and net profit of Rs 254.28 crore, up 20.35%. Operating margin was 20.88% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 27.66 against an industry PE of 44.99, below the sector average, with a return on equity of 20.51%. In the June 2026 quarter, revenue rose 7.27% to Rs 311.20 crore and net profit grew 31.23% to Rs 33.20 crore. The share price is up 10.38% over the past year. Foreign investors raised their holding from 7.12% in June 2025 to 10.40% in June 2026.
DII Backed High Margin Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these DII backed high margin stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| CESC | 18,927.29 | 1,617.57 | 8.93% | 5.18% | 13.20% | 20.95% |
| CAMS | 1,567.42 | 472.02 | 6.26% | 12.06% | 1.58% | 50.40% |
| Metropolis | 1,671.43 | 191.18 | 24.15% | 15.69% | 31.39% | 25.83% |
| Kirloskar Pneumatic | 1,814.46 | 254.28 | 9.15% | 7.27% | 20.35% | 17.72% |
Check the Univest Screener for live data on these DII backed high margin stocks
Institutional Holding in CESC, CAMS, Metropolis and Kirloskar Pneumatic
Institutional holding shows who is backing these DII backed high margin stocks alongside the promoter. The table uses the latest reported quarter for each. CAMS has the deepest institutional backing, with FII and DII together holding 68.42% as of June 2026. Domestic institutions increased their holding over the past year in CESC (from 25.38% to 26.14%), CAMS (from 17.31% to 23.54%) and Metropolis (from 32.40% to 35.12%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| CESC | 52.11% | 11.47% | 26.14% | 10.28% | June 2026 |
| CAMS | Nil | 44.88% | 23.54% | 31.57% | June 2026 |
| Metropolis | 48.86% | 11.03% | 35.12% | 4.99% | June 2026 |
| Kirloskar Pneumatic | 38.81% | 10.40% | 25.98% | 24.82% | June 2026 |
Risks to Weigh in DII Backed High Margin Stocks
Being careful with DII backed high margin 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: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between DII Backed High Margin Stocks
Picking from DII backed high margin stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (22.18 to 60.75) 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.
Download the Univest iOS App or Univest Android App to track CESC, CAMS, Metropolis and Kirloskar Pneumatic live prices.
Conclusion
Among DII backed high margin stocks, CESC stands out for the lowest PE of the group at 10.60, CAMS for the highest return on equity at 36.04%, Metropolis for 24.15% revenue growth in FY26 and Kirloskar Pneumatic for the strongest latest-quarter profit growth at 31.23%. 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 backed high margin 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 Backed High Margin Stocks to Watch
Which are the best DII backed high margin stocks to watch for multibagger potential?
Ans. CESC, CAMS, Metropolis and Kirloskar Pneumatic are the 4 names this list highlights, with market caps of Rs 17,276 crore, Rs 16,623 crore, Rs 11,431 crore and Rs 7,251 crore respectively. CESC is notable for the lowest PE of the group at 10.60. CAMS stands out for the highest return on equity at 36.04%. Metropolis offers 24.15% revenue growth in FY26. Kirloskar Pneumatic brings the strongest latest-quarter profit growth at 31.23%. These are watchlist names for DII backed high margin stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is CAMS a good stock for long-term investors?
Ans. CAMS has a return on equity of 36.04%, a PE of 33.85 against an industry PE of 42.45 and a market cap of Rs 16,623 crore. Net profit has compounded at 13.25% a year since FY22, and FY26 revenue rose 6.26% while June 2026 quarter net profit grew 17.64%. Long-term returns in DII backed high margin stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can CESC become a multibagger from here?
Ans. CESC has a market cap of Rs 17,276 crore. A multibagger outcome in DII backed high margin stocks requires earnings to keep growing faster than the market for several years. FY26 revenue rose 8.93%, and June 2026 quarter net profit grew 3.71%. At a PE of 10.60 against an industry PE of 22.18, valuation should be checked against that growth before investing.
What is the market cap of CESC, CAMS, Metropolis and Kirloskar Pneumatic?
Ans. As of 30 October 2026, CESC has a market cap of Rs 17,276 crore, CAMS has a market cap of Rs 16,623 crore, Metropolis has a market cap of Rs 11,431 crore and Kirloskar Pneumatic has a market cap of Rs 7,251 crore. All of them qualify as smallcaps. 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 backed high margin stocks.
What are the risks of investing in DII backed high margin 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. Comparing each PE with growth gives a fuller picture than the PE alone.
Is CESC trading below its industry PE?
Ans. CESC trades at a PE of 10.60 against an industry PE of 22.18. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 8.93% and June 2026 quarter net profit grew 3.71%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in CESC, CAMS, Metropolis and Kirloskar Pneumatic?
Ans. As of the latest reported quarter, FII and DII together hold 37.61% of CESC (11.47% and 26.14%), 68.42% of CAMS (44.88% and 23.54%), 46.15% of Metropolis (11.03% and 35.12%) and 36.38% of Kirloskar Pneumatic (10.40% and 25.98%). Rising institutional holding is a useful signal in DII backed high margin stocks, though it should be read with earnings trends rather than on its own.
