4 Largecap DII Favourite Stocks to Watch for Future Multibagger Potential: HDFC Bank, Infosys, Sun Pharma and UltraTech Cement
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HDFC Bank Rs 692.80. Infosys Rs 1,153.80. Sun Pharma Rs 1,748. UltraTech Cement Rs 11,050. Market caps from Rs 3.19 lakh crore to Rs 11.21 lakh crore. Data as of 23 Oct 2026.
Quick Answer
HDFC Bank, Infosys, Sun Pharma and UltraTech Cement are the 4 picks in this DII favourite stocks watchlist, with market caps between Rs 3.19 lakh crore and Rs 11.21 lakh crore. HDFC Bank stands out for the lowest PE of the group at 13.59, while Infosys offers the highest return on equity at 33.24%. PE ratios run from 13.59 to 37.26, so compare each one with its industry PE before investing. All figures are as of 23 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, Infosys, Sun Pharma and UltraTech Cement meet that test, with market caps from Rs 3.19 lakh crore to Rs 11.21 lakh crore and HDFC Bank offering the lowest PE of the group at 13.59. Each of these companies has domestic institutional holding of at least 15 per cent that rose by at least 2 percentage points over the past year, and net profit rose in FY26 and in the latest quarter.
This list covers companies with domestic institutional holding of at least 15 per cent that rose by at least 2 percentage points over the past year, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. 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 23 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 of large companies where domestic institutions such as mutual funds and insurers have raised their stake over the past year, a sign of strong local confidence. The four here cover private banking, IT services, pharmaceuticals and cement.
Steady buying by mutual funds and insurers shows long-term domestic money backing the business. For DII favourite stocks, both FY26 and the latest quarter showed growth. With DII 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 DII favourite stocks are complete. Read each company’s latest results and exchange filings before acting on DII favourite stocks.
DII Favourite Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 23 October 2026. HDFC Bank has the lowest PE of the group at 13.59, while Infosys posts the highest return on equity at 33.24%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| HDFC Bank | 692.80 | 11,20,606 | 13.59 | 11.94 | 13.14% | 1.87 | 681.90 to 1,020.50 |
| Infosys | 1,153.80 | 4,42,078 | 14.58 | 18.27 | 33.24% | 5.12 | 980.40 to 1,728.00 |
| Sun Pharmaceutical Industries | 1,748 | 4,20,024 | 34.66 | 36.42 | 13.74% | 5.02 | 1,583.70 to 2,046.90 |
| UltraTech Cement | 11,050 | 3,19,335 | 37.26 | 29.41 | 10.66% | 4.16 | 10,325.00 to 13,110.00 |
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 13.59 against an industry PE of 11.94, with a return on equity of 13.14%. The dividend yield is 2.13%.
Infosys: Return on Equity of 33.24%
Infosys is a large IT services and consulting company that has built an AI-first offering around its Topaz platform. It reported FY26 revenue of Rs 1,82,972 crore, up 9.83% year on year, and net profit of Rs 29,474 crore, up 10.18%. Net profit has compounded at 7.41% a year since FY22, while revenue has grown 10.23% a year. Operating margin was 25.36% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
The stock trades at a PE of 14.58 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.40%. In the June 2026 quarter, revenue rose 13.56% to Rs 49,195 crore and net profit grew 12.29% to Rs 7,775 crore. Domestic institutions raised their holding from 39.60% in June 2025 to 42.96% in June 2026.
Sun Pharma: 35.75% Profit CAGR Since FY22
Sun Pharmaceutical Industries is one of India’s largest drugmakers and sells generic and specialty medicines in India and overseas. It reported FY26 revenue of Rs 61,673.94 crore, up 12.69% year on year, and net profit of Rs 11,564.52 crore, up 5.32%. Net profit has compounded at 35.75% a year since FY22, while revenue has grown 11.62% a year. Operating margin was 31.47% in FY26. The debt-to-equity ratio is 0.06, which keeps interest costs low.
In the June 2026 quarter, revenue rose 11.93% to Rs 16,023.50 crore and net profit grew 26.41% to Rs 2,910.80 crore. The share price has gained 110.81% over five years. Domestic institutions raised their holding from 20.23% in September 2025 to 22.27% in September 2026. The stock trades at a PE of 34.66 against an industry PE of 36.42, below the sector average, with a return on equity of 13.74%.
UltraTech Cement: Profit Compounding at 3.36% a Year
UltraTech Cement is the largest cement producer in India by capacity, with plants and grinding units across the country. It reported FY26 revenue of Rs 89,089.04 crore, up 16.15% year on year, and net profit of Rs 8,188.35 crore, up 35.58%. Revenue has compounded at 13.81% a year since FY22. Operating margin was 19.71% in FY26. The debt-to-equity ratio is 0.31.
The stock trades at a PE of 37.26 against an industry PE of 29.41. The dividend yield is 2.21%. In the June 2026 quarter, revenue rose 15.49% to Rs 24,778.47 crore and net profit grew 17.24% to Rs 2,603.72 crore. Domestic institutions raised their holding from 16.65% in September 2025 to 20.86% in September 2026.
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% |
| Infosys | 1,82,972 | 29,474 | 9.83% | 10.23% | 7.41% |
| Sun Pharma | 61,673.94 | 11,564.52 | 12.69% | 11.62% | 35.75% |
| UltraTech Cement | 89,089.04 | 8,188.35 | 16.15% | 13.81% | 3.36% |
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Institutional Holding in HDFC Bank, Infosys, Sun Pharma and UltraTech Cement
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%), Infosys (from 39.60% to 42.96%), Sun Pharma (from 20.23% to 22.27%) and UltraTech Cement (from 16.65% to 20.86%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HDFC Bank | Nil | 39.40% | 43.63% | 16.97% | September 2026 |
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| Sun Pharma | 52.68% | 14.36% | 22.27% | 10.70% | September 2026 |
| UltraTech Cement | 58.48% | 12.69% | 20.86% | 7.97% | September 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:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: UltraTech Cement trades at a PE of 37.26 against an industry PE of 29.41, 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 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 36.42) 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 DII favourite stocks, HDFC Bank stands out for the lowest PE of the group at 13.59, Infosys for the highest return on equity at 33.24%, Sun Pharma for the fastest profit growth, 35.75% a year since FY22 and UltraTech Cement for 16.15% 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, Infosys, Sun Pharma and UltraTech Cement are the 4 names this list highlights, with market caps of Rs 11,20,606 crore, Rs 4,42,078 crore, Rs 4,20,024 crore and Rs 3,19,335 crore respectively. HDFC Bank is notable for the lowest PE of the group at 13.59. Infosys stands out for the highest return on equity at 33.24%. Sun Pharma offers the fastest profit growth, 35.75% a year since FY22. UltraTech Cement brings 16.15% 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 Infosys a good stock for long-term investors?
Ans. Infosys has a return on equity of 33.24%, a PE of 14.58 against an industry PE of 18.27 and a market cap of Rs 4,42,078 crore. Net profit has compounded at 7.41% a year since FY22, and FY26 revenue rose 9.83% while June 2026 quarter net profit grew 12.29%. 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 Sun Pharma become a multibagger from here?
Ans. Sun Pharma has already gained 110.81% 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 35.75% a year since FY22, and FY26 revenue rose 12.69%. At a PE of 34.66 against an industry PE of 36.42, valuation should be checked against that growth before investing.
What is the market cap of HDFC Bank, Infosys, Sun Pharma and UltraTech Cement?
Ans. As of 23 October 2026, HDFC Bank has a market cap of Rs 11,20,606 crore, Infosys has a market cap of Rs 4,42,078 crore, Sun Pharma has a market cap of Rs 4,20,024 crore and UltraTech Cement has a market cap of Rs 3,19,335 crore. All of them qualify as largecaps. 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 market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. UltraTech Cement trades at a PE of 37.26 against an industry PE of 29.41, so earnings growth needs to hold up.
Why is UltraTech Cement trading at a PE of 37.26?
Ans. UltraTech Cement’s PE of 37.26 compares with an industry PE of 29.41. The market is paying a premium for latest-quarter profit growth of 17.24% and FY26 revenue growth of 16.15%, which also means the stock is more sensitive if growth slows. Investors in DII 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 HDFC Bank, Infosys, Sun Pharma and UltraTech Cement?
Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 70.05% of Infosys (27.09% and 42.96%), 36.63% of Sun Pharma (14.36% and 22.27%) and 33.55% of UltraTech Cement (12.69% and 20.86%). Rising institutional holding is a useful signal in DII favourite stocks, though it should be read with earnings trends rather than on its own.
