Institutional Buying Amid Falling Prices: Contrarian Stock Picks of May 2025

In a market driven by momentum and sentiment, it’s rare to see institutional investors stepping in when prices are sliding. Yet, May 2025 saw several such contrarian bets — where Domestic Institutional Investors (DIIs) accumulated shares in companies even as their stock prices declined. These moves could signal deep conviction, insider insights, or a long-term value outlook by large funds.

Here’s a deep dive into some notable contrarian stock picks where prices have dropped but institutional interest surged.

1. ONEPOINT: Valuation Stretch Meets Institutional Optimism

Price Drop: -21.9% | Investment Value: ₹332.5 Cr
Despite trading at a lofty price-to-earnings ratio of 50.1 and a price-to-book of 4.18, ONEPOINT attracted major DII interest. The company boasts solid profitability metrics — with ROE at 21.6% and ROCE at 22.3%. Its net profit stands at ₹31.1 Cr with healthy reserves of ₹322 Cr. The fall in share price could be a temporary sentiment shift, and DIIs seem to be betting on a bounce-back.

2. MOS: High Valuation, Strong Fundamentals

Price Drop: -22.1% | Investment Value: ₹101.2 Cr
MOS commands a steep P/E of 104, but boasts robust financial metrics including a debt-to-equity ratio of just 0.05 and interest coverage of 17.8. With a high price-to-book ratio of 9.05, the valuation seems stretched, yet institutional investors poured in significant funds. The stock may be positioned for long-term growth, justifying the current multiples.

3. WOMANCART: Deep Price Correction, Solid ROE

Price Drop: -41.1% | Investment Value: ₹40.8 Cr
Once trading near ₹437, WOMANCART has tumbled over 40% this month, yet DIIs stepped in. The company shows healthy financials with ROE of 17.3% and low debt levels (0.22 debt-to-equity). Despite negative free cash flow, institutional confidence hints at expectations of a turnaround or strategic shift.

4. TECHERA: Tech with Hidden Upside?

Price Drop: -32.2% | Investment Value: ₹24.1 Cr
TECHERA has witnessed a steep decline from ₹236 to ₹160, despite solid ROE of 64.3% and ROCE of 25.9%. DIIs participated in two trades totaling over ₹24 Cr, indicating belief in future earnings growth in the tech sector, possibly driven by digital transformation or AI initiatives.

5. JAYBEE: Freefall but Fundamentals Intact

Price Drop: -57.9% | Investment Value: ₹26.2 Cr
JAYBEE saw one of the sharpest corrections in this list. Falling from ₹456 to ₹192, it trades at a P/E of just 17.1, with impressive ROCE (32.1%) and reserves of ₹125 Cr. The PEG ratio is an ultra-low 0.07 — suggesting undervaluation relative to its earnings growth. A classic contrarian setup.

6. DHARIWAL: High ROE, Low Enthusiasm

Price Drop: -11.2% | Investment Value: ₹29.2 Cr
Despite high ROE of 80.1% and ROCE of 50.2%, DHARIWAL’s stock softened. Its Piotroski score of 6 and a manageable debt-to-equity ratio point to financial health. The recent dip may offer DIIs a value entry point.

7. BAHETI: Mild Dip, Strong Profitability

Price Drop: -2.7% | Investment Value: ₹4.9 Cr
While the price correction was marginal, the fundamentals are compelling — ROE at 35.8%, ROCE at 22.8%, and low P/E of 36.4. Its debt-to-equity is a concern at 2.41, but strong net profits seem to counterbalance the risk.

8. OLIL: Near-Term Dip, Long-Term Story

Price Drop: -3.9% | Investment Value: ₹8.2 Cr
A high Piotroski score and solid earnings make OLIL an interesting pick. Though price correction was limited, the institutional volume and trade count (16) point to consistent DII buying through the month.

9. AGARWALTUF: Midcap with High ROE

Price Drop: -7.4% | Investment Value: ₹4.8 Cr
AGARWALTUF showcases an ROE of 72.7% — one of the highest in this cohort. With a P/E of 27.8 and moderate debt, its appeal to DIIs is understandable despite the correction.

10. GCHOTELS: Betting on a Turnaround

Price Drop: -16.1% | Investment Value: ₹2.5 Cr
Although GCHOTELS trades at a high P/E of 62.1 and moderate debt levels, it has shown consistent profitability and healthy reserves. DIIs may be anticipating a revival in hospitality and tourism post-economic normalization.

Summary: Why This Matters

These investments indicate that institutional investors are actively identifying value amid volatility. While retail investors may panic-sell during downtrends, DIIs appear to be taking the long view — entering positions where they foresee fundamental strength and recovery potential.

Retail investors should not mirror these moves blindly but can consider them signals worth investigating. Stocks with falling prices yet rising institutional interest often hint at deeper stories — undervaluation, sector tailwinds, or strategic shifts yet to be priced in.