4 Smallcap FII Favourite Stocks to Watch for Future Multibagger Potential: Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic

FII favourite stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic meet that test, with market caps from Rs 7,874 crore to Rs 27,423 crore and Craftsman Automation offering the biggest five-year price gain at 332.22%. Each of these companies has a market capitalisation below Rs 30,000 crore and foreign institutional holding of at least 10 per cent that rose by at least 1 percentage point over the past year, 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 foreign institutional holding of at least 10 per cent that rose by at least 1 percentage point 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 below Rs 30,000 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 23 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 of smaller companies where foreign institutional investors have raised their stake over the past year, a sign of growing global confidence. The four here cover auto components, lending, railway wagons and compressors.

Rising foreign holding shows global funds are adding to these names. For FII favourite stocks, both FY26 and the latest quarter showed growth. A sensible way to study FII favourite stocks is to look at profit growth, returns and valuation side by side. Below, each of FII favourite stocks gets its own breakdown of growth, returns and valuation. Treat FII favourite stocks as a research list, since share prices and rankings change with every earnings season.

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

Prices are closing prices as of 23 October 2026. Capri Global has the lowest PE of the group at 21.02, while Kirloskar Pneumatic posts the highest return on equity at 20.51%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Craftsman Automation	10,488	27,423	58.98	37.22	11.76%	5.22	6,324.00 to 11,999.00
Capri Global Capital	235.84	23,703	21.02	17.97	13.18%	3.29	151.10 to 287.45
Titagarh Rail Systems	663.35	8,926	47.37	45.85	6.51%	3.71	663.35 to 1,104.30
Kirloskar Pneumatic Company	584.70	7,874	30.04	44.99	20.51%	6.31	495.05 to 1,098.55

Craftsman Automation: 23.87% Profit CAGR Since FY22

Craftsman Automation makes powertrain and engineering components, aluminium products and industrial machines. It reported FY26 revenue of Rs 8,130.63 crore, up 42.25% year on year, and net profit of Rs 383.99 crore, up 91.16%. Net profit has compounded at 23.87% a year since FY22, while revenue has grown 38.27% a year. Operating margin was 15.95% in FY26.

In the June 2026 quarter, revenue rose 37.21% to Rs 2,454.66 crore and net profit grew 116.31% to Rs 150.55 crore. The share price has gained 332.22% over five years and 70.31% over the past year. Domestic institutions raised their holding from 22.67% in June 2025 to 32.90% in June 2026. The stock trades at a PE of 58.98 against an industry PE of 37.22.

Capri Global: 46.68% Profit CAGR Since FY22

Capri Global Capital is a non-banking finance company that offers housing loans, construction finance, gold loans and loans to small businesses. It reported FY26 revenue of Rs 4,742.01 crore, up 45.87% year on year, and net profit of Rs 949.15 crore, up 98.35%. Net profit has compounded at 46.68% a year since FY22, while revenue has grown 48.25% a year. Operating margin was 65.31% in FY26.

The stock trades at a PE of 21.02 against an industry PE of 17.97, with a return on equity of 13.18%. In the June 2026 quarter, revenue rose 57.33% to Rs 1,581.21 crore and net profit grew 102.05% to Rs 353.38 crore. The share price has gained 101.76% over five years and 27.72% over the past year. Foreign investors raised their holding from 4.83% in September 2025 to 13.00% in September 2026.

Titagarh Rail: Quarterly Profit Up 69.94%

Titagarh Rail Systems makes freight wagons, metro and passenger rail coaches and other rail equipment. It reported FY26 revenue of Rs 3,234.26 crore and net profit of Rs 121.55 crore, up 40.12%. Net profit has compounded at 11.80% a year since FY22, while revenue has grown 21.48% a year. Operating margin was 11.89% in FY26. The debt-to-equity ratio is 0.25.

In the June 2026 quarter, revenue rose 11.69% to Rs 771.71 crore and net profit grew 69.94% to Rs 52.58 crore. The share price has gained 185.12% over five years. Domestic institutions raised their holding from 12.78% in September 2025 to 15.95% in September 2026. The stock trades at a PE of 47.37 against an industry PE of 45.85.

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 30.04 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.

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	Revenue (Rs Cr)	Net Profit (Rs Cr)	Latest Quarter Revenue Growth	Net Profit Growth (YoY)	Latest Quarter Profit Growth	Operating Margin (Latest Quarter)
Craftsman Automation	8,130.63	383.99	37.21%	91.16%	116.31%	16.76%
Capri Global	4,742.01	949.15	57.33%	98.35%	102.05%	68.84%
Titagarh Rail	3,234.26	121.55	11.69%	40.12%	69.94%	13.19%
Kirloskar Pneumatic	1,814.46	254.28	7.27%	20.35%	31.23%	17.72%

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Institutional Holding in Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic

Institutional holding shows who is backing these FII favourite stocks alongside the promoter. The table uses the latest reported quarter for each. Craftsman Automation has the deepest institutional backing, with FII and DII together holding 50.18% as of June 2026. Domestic institutions increased their holding over the past year in Craftsman Automation (from 22.67% to 32.90%) and Titagarh Rail (from 12.78% to 15.95%).

Stock	Promoter	FII	DII	Public	Quarter
Craftsman Automation	42.41%	17.28%	32.90%	7.41%	June 2026
Capri Global	59.92%	13.00%	17.04%	10.04%	September 2026
Titagarh Rail	40.46%	11.38%	15.95%	32.21%	September 2026
Kirloskar Pneumatic	38.81%	10.40%	25.98%	24.82%	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:

• Past growth may not repeat.
• Share prices can move sharply in either direction.
• Valuation: Craftsman Automation trades at a PE of 58.98 against an industry PE of 37.22, 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 FII Favourite Stocks

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

1. Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
2. Compare each PE with the industry PE (17.97 to 45.85) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among FII favourite stocks, Craftsman Automation stands out for the biggest five-year price gain at 332.22%, Capri Global for the fastest profit growth, 46.68% a year since FY22, Titagarh Rail for 11.69% revenue growth in the June 2026 quarter and Kirloskar Pneumatic for the highest return on equity at 20.51%. 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. Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic are the 4 names this list highlights, with market caps of Rs 27,423 crore, Rs 23,703 crore, Rs 8,926 crore and Rs 7,874 crore respectively. Craftsman Automation is notable for the biggest five-year price gain at 332.22%. Capri Global stands out for the fastest profit growth, 46.68% a year since FY22. Titagarh Rail offers 11.69% revenue growth in the June 2026 quarter. Kirloskar Pneumatic brings the highest return on equity at 20.51%. These are watchlist names for FII favourite stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Kirloskar Pneumatic a good stock for long-term investors?

Ans. Kirloskar Pneumatic has a return on equity of 20.51%, a PE of 30.04 against an industry PE of 44.99 and a market cap of Rs 7,874 crore. FY26 revenue rose 9.15%, and June 2026 quarter net profit grew 31.23%. 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 Capri Global become a multibagger from here?

Ans. Capri Global has already gained 101.76% 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 46.68% a year since FY22, and FY26 revenue rose 45.87%. At a PE of 21.02 against an industry PE of 17.97, valuation should be checked against that growth before investing.

What is the market cap of Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic?

Ans. As of 23 October 2026, Craftsman Automation has a market cap of Rs 27,423 crore, Capri Global has a market cap of Rs 23,703 crore, Titagarh Rail has a market cap of Rs 8,926 crore and Kirloskar Pneumatic has a market cap of Rs 7,874 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 FII favourite stocks.

What are the risks of investing in FII 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. Craftsman Automation trades at a PE of 58.98 against an industry PE of 37.22, so earnings growth needs to hold up.

Why is Craftsman Automation trading at a PE of 58.98?

Ans. Craftsman Automation's PE of 58.98 compares with an industry PE of 37.22. The market is paying a premium for profit growth of 23.87% a year since FY22, latest-quarter profit growth of 116.31% and FY26 revenue growth of 42.25%, 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 Craftsman Automation, Capri Global, Titagarh Rail and Kirloskar Pneumatic?

Ans. As of the latest reported quarter, FII and DII together hold 50.18% of Craftsman Automation (17.28% and 32.90%), 30.04% of Capri Global (13.00% and 17.04%), 27.33% of Titagarh Rail (11.38% and 15.95%) and 36.38% of Kirloskar Pneumatic (10.40% and 25.98%). Rising institutional holding is a useful signal in FII favourite stocks, though it should be read with earnings trends rather than on its own.