Mutual Funds Increase Stakes in 5 Stocks by Up to 4.20% in Q3 FY26
Mutual funds increased stakes in five companies during Q3 FY26, with PG Electroplast Ltd leading at 4.20% increase, followed by RBL Bank at 3.84%. Five-Star Business Finance, Can Fin Homes, and L&T Finance also witnessed incremental institutional accumulation, reflecting confidence across electronics manufacturing, banking, and financial services sectors.
*this image is generated using AI for illustrative purposes only.
Mutual funds demonstrated selective buying interest during Q3 FY26, increasing their stakes in five companies by margins ranging from 1.35% to 4.20%. This institutional accumulation signals confidence in these companies' growth outlook and long-term potential across diverse sectors.
Top Mutual Fund Picks in Q3 FY26
The following table summarizes the mutual fund stake increases across the five companies:
| Company | Sep 2025 Stake | Dec 2025 Stake | Increase |
|---|---|---|---|
| PG Electroplast Ltd | 14.48% | 18.68% | 4.20% |
| RBL Bank Ltd | 30.60% | 34.44% | 3.84% |
| Five-Star Business Finance | 8.23% | 10.42% | 2.19% |
| Can Fin Homes Ltd | 14.67% | 16.11% | 1.44% |
| L&T Finance Ltd | 10.51% | 11.86% | 1.35% |
Electronics Manufacturing Leader
PG Electroplast Ltd topped the list with mutual funds increasing their stake by 4.20 percentage points. The company operates as a leading Indian Electronic Manufacturing Services (EMS) and Plastic Injection Moulding company, providing Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM) services for major brands in consumer electronics, home appliances, automotive, and lighting sectors.
As of December 2025, the company's shareholding structure shows promoters holding 43.41%, while Foreign Institutional Investors (FIIs) account for 10.59% and Domestic Institutional Investors (DIIs) hold 22.66%. The public owns 23.06% of the total shares, with others accounting for 0.27%.
Banking Sector Attraction
RBL Bank Ltd witnessed the second-highest increase in mutual fund holdings, with stakes rising by 3.84 percentage points. Established in 1943, RBL Bank operates as a major Indian private sector bank offering comprehensive personal, business, and wholesale banking services, including loans, savings and current accounts, and investment products.
The bank's shareholding pattern as of December 2025 reveals FIIs holding 21.91%, DIIs at 39.69%, government ownership at 0.35%, and public shareholding at 38.04%.
Financial Services Focus
Mutual funds also increased exposure to specialized financial services companies. Five-Star Business Finance Ltd, a Chennai-based NBFC specializing in secured business and small mortgage loans for micro-entrepreneurs, saw mutual fund stakes rise by 2.19 percentage points. The company focuses on serving self-employed individuals often excluded by traditional banks, using property collateral for security.
Can Fin Homes Ltd, a deposit-taking Housing Finance Company promoted by Canara Bank, experienced a 1.44 percentage point increase in mutual fund holdings. The company focuses on promoting home ownership among low-to-middle-income groups and salaried individuals.
L&T Finance Ltd, part of the Larsen & Toubro group, rounded out the list with a 1.35 percentage point increase. The NBFC offers diverse retail and wholesale financial products including rural, housing, and two-wheeler loans, emphasizing digital transformation and financial inclusion.
Institutional Confidence Signal
The incremental accumulation by mutual funds across these companies spanning electronics manufacturing, banking, and specialized financial services reflects institutional confidence in their business models and growth potential. These shareholding changes provide valuable insights for investors monitoring institutional investment patterns and sector preferences during Q3 FY26.
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