3 Largecap FII Favourite Stocks to Watch for Future Multibagger Potential: ICICI Bank, Shriram Finance and Polycab

FII favourite stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. ICICI Bank, Shriram Finance and Polycab meet that test, with market caps from Rs 1.25 lakh crore to Rs 9.62 lakh crore and ICICI Bank offering the lowest PE of the group at 16.09. Foreign institutional investors raised their stake in each of these companies by more than 4 percentage points over the past year.

This list covers large companies where FII holding rose by more than 4 percentage points year on year, with complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening FII 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 FII Favourite Stocks and Why Do They Attract Multibagger Interest?

FII favourite stocks are shares where foreign institutional investors now hold a bigger part of the company than they did a year ago. Large global funds do detailed research, so a rising FII stake is a sign of confidence in the business.

Foreign funds tend to favour companies with clear growth, strong management and good disclosure. Businesses that attract such money while growing profit are the ones investors compare in FII favourite stocks.

FII Favourite Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 16 October 2026. ICICI Bank has the lowest PE of the group at 16.09, while Polycab posts the highest return on equity at 22.25%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
ICICI Bank	1,397	9,61,516	16.09	12.05	15.00%	2.57	1,187.60 to 1,480.00
Shriram Finance	939.95	2,23,308	19.73	17.68	15.21%	2.12	662.25 to 1,153.70
Polycab India	8,219	1,25,388	43.16	49.96	22.25%	10.44	6,663.00 to 10,126.00

ICICI Bank: 22.29% Profit CAGR Since FY22

ICICI Bank is one of the largest private sector banks in India, with a strong retail and digital franchise. It reported FY26 total income of Rs 3,12,118.36 crore, up 5.95% year on year, and net profit of Rs 57,673.39 crore, up 5.98%. Net profit has compounded at 22.29% a year since FY22, while total income has grown 18.64% a year.

In the June 2026 quarter, total income rose 6.86% to Rs 79,689.22 crore and net profit grew 12.62% to Rs 16,209.74 crore. The share price has gained 85.57% over five years. Foreign investors raised their holding from 45.56% in September 2025 to 50.44% in September 2026. The stock trades at a PE of 16.09 against an industry PE of 12.05, with a return on equity of 15.00%.

Shriram Finance: 38.64% Profit CAGR Since FY22

Shriram Finance is a major NBFC focused on commercial vehicle, small business and personal loans. It reported FY26 total income of Rs 48,192.65 crore, up 15.13% year on year, and net profit of Rs 10,004.20 crore, up 6.16%. Net profit has compounded at 38.64% a year since FY22, while total income has grown 25.75% a year.

The stock trades at a PE of 19.73 against an industry PE of 17.68, with a return on equity of 15.21%. In the June 2026 quarter, total income rose 16.26% to Rs 13,418.74 crore and net profit grew 59.95% to Rs 3,447.26 crore. The share price has gained 239.61% over five years and 40.91% over the past year. Domestic institutions raised their holding from 18.66% in September 2025 to 19.90% in June 2026.

Polycab: 33.79% Profit CAGR Since FY22

Polycab India is a leading maker of wires and cables in India, with a growing fast-moving electrical goods business. It reported FY26 revenue of Rs 29,120.04 crore, up 28.76% year on year, and net profit of Rs 2,708.43 crore, up 32.41%. Net profit has compounded at 33.79% a year since FY22, while revenue has grown 24.06% a year. Operating margin was 14.69% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.

In the June 2026 quarter, revenue rose 38.90% to Rs 8,314.65 crore and net profit grew 32.84% to Rs 796.65 crore. The share price has gained 230.55% over five years. Foreign investors raised their holding from 11.44% in June 2025 to 19.00% in June 2026. The stock trades at a PE of 43.16 against an industry PE of 49.96, below the sector average, with a return on equity of 22.25%.

FII Favourite Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these FII 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
ICICI Bank	3,12,118.36	57,673.39	5.95%	18.64%	22.29%
Shriram Finance	48,192.65	10,004.20	15.13%	25.75%	38.64%
Polycab	29,120.04	2,708.43	28.76%	24.06%	33.79%

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Institutional Holding in ICICI Bank, Shriram Finance and Polycab

Institutional holding shows who is backing these FII favourite stocks alongside the promoter. The table uses the latest reported quarter for each. ICICI Bank has the deepest institutional backing, with FII and DII together holding 92.22% as of September 2026. Domestic institutions increased their holding over the past year in Shriram Finance (from 18.66% to 19.90%).

Stock	Promoter	FII	DII	Public	Quarter
ICICI Bank	Nil	50.44%	41.78%	7.78%	September 2026
Shriram Finance	20.30%	54.77%	19.90%	5.04%	June 2026
Polycab	61.46%	19.00%	7.62%	11.92%	June 2026

Risks to Weigh in FII Favourite Stocks

Being careful with FII favourite stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:

• FII flows can change quickly with global markets.
• A rise in holding does not guarantee a rise in price.
• Valuation: ICICI Bank trades at a PE of 16.09 against an industry PE of 12.05, 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 FII Favourite Stocks

Picking from FII favourite stocks comes down to four checks, applied in order.

1. Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
2. Compare each PE with the industry PE (12.05 to 49.96) and ask whether the growth rate justifies any gap.
3. Track FII holding, quarterly profit growth and the return on equity in every shareholding update.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among FII favourite stocks, ICICI Bank stands out for the lowest PE of the group at 16.09, Shriram Finance for the fastest profit growth, 38.64% a year since FY22 and Polycab for the highest return on equity at 22.25%. 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 FII 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.

Frequently Asked Questions on FII Favourite Stocks to Watch

Which are the best FII favourite stocks to watch for multibagger potential?

Ans. ICICI Bank, Shriram Finance and Polycab are the 3 names this list highlights, with market caps of Rs 9,61,516 crore, Rs 2,23,308 crore and Rs 1,25,388 crore respectively. ICICI Bank is notable for the lowest PE of the group at 16.09. Shriram Finance stands out for the fastest profit growth, 38.64% a year since FY22. Polycab offers the highest return on equity at 22.25%. These are watchlist names for FII favourite stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Polycab a good stock for long-term investors?

Ans. Polycab has a return on equity of 22.25%, a PE of 43.16 against an industry PE of 49.96 and a market cap of Rs 1,25,388 crore. Net profit has compounded at 33.79% a year since FY22, and FY26 revenue rose 28.76% while June 2026 quarter net profit grew 32.84%. Long-term returns in FII favourite stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Shriram Finance become a multibagger from here?

Ans. Shriram Finance has already gained 239.61% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in FII favourite stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 38.64% a year since FY22, and FY26 revenue rose 15.13%. At a PE of 19.73 against an industry PE of 17.68, valuation should be checked against that growth before investing.

What is the market cap of ICICI Bank, Shriram Finance and Polycab?

Ans. As of 16 October 2026, ICICI Bank has a market cap of Rs 9,61,516 crore, Shriram Finance has a market cap of Rs 2,23,308 crore and Polycab has a market cap of Rs 1,25,388 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 FII favourite stocks.

What are the risks of investing in FII favourite stocks?

Ans. The main risks are sudden changes in global fund flows, currency moves and valuations that already reflect strong interest. Companies with steady earnings and strong domestic holders handle these better. ICICI Bank trades at a PE of 16.09 against an industry PE of 12.05, so earnings growth needs to hold up.

Why is ICICI Bank trading at a PE of 16.09?

Ans. ICICI Bank's PE of 16.09 compares with an industry PE of 12.05. The market is paying a premium for a return on equity of 15.00%, profit growth of 22.29% a year since FY22 and latest-quarter profit growth of 12.62%, which also means the stock is more sensitive if growth slows. Investors in FII 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 ICICI Bank, Shriram Finance and Polycab?

Ans. As of the latest reported quarter, FII and DII together hold 92.22% of ICICI Bank (50.44% and 41.78%), 74.67% of Shriram Finance (54.77% and 19.90%) and 26.62% of Polycab (19.00% and 7.62%). Rising institutional holding is a useful signal in FII favourite stocks, though it should be read with earnings trends rather than on its own.