Discover the smallcap stocks that quietly attracted institutional investments in May 2025, signaling strong growth potential under the radar.
Under-the-Radar Buys: Smallcaps Attracting Institutional Money in May 2025
In a month dominated by heavyweight trades and blue-chip momentum, a quieter shift in institutional sentiment is catching the eye of savvy investors. May 2025 witnessed significant institutional buying in select smallcap stocks—companies typically overlooked by the broader market but now emerging as potential high-growth candidates.
Institutional activity in smallcaps often serves as a subtle signal of long-term conviction. These are not speculative retail trades but calculated moves backed by research, valuation frameworks, and confidence in fundamentals. Let’s explore the smallcap names that have drawn serious institutional attention this past month.
1. GODHA: Penny Stock With High Institutional Confidence
- Institutional Qty Bought: 35.4 million shares
- Current Price: ₹0.54
- Market Cap: ₹50.6 Cr
- PE Ratio: 30.5
- Graham Number: 1.19
Godha Cabcon & Insulation Ltd stands out with the highest institutional volume among smallcaps in May. Despite its penny stock status, the sizeable acquisition signals confidence in its long-term turnaround potential. While the return on equity (ROE) remains modest at 0.37%, the large trade suggests institutions may be positioning ahead of expected operational improvements.
2. ONEPOINT: Tech-Driven Midcap in the Making
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- Institutional Qty Bought: 5.56 million shares
- Current Price: ₹60.5
- Market Cap: ₹1,557 Cr
- ROE: 21.6%
- Graham Number: 20.8
One Point One Solutions Ltd, a fast-growing tech-enabled services company, combines strong ROE and stable valuations. A PE ratio of 31.4 keeps it aligned with sector averages. With institutional inflows at this scale, ONEPOINT may soon graduate from a smallcap to a midcap spotlight.
3. GANGAFORGE: Niche Engineering Bet
- Institutional Qty Bought: 2.02 million shares
- Current Price: ₹5.06
- Market Cap: ₹68.2 Cr
- ROE: 1.92%
Ganga Forging Ltd is a microcap name with niche industrial exposure. Though fundamentals remain early-stage, institutional buyers appear to be banking on margin improvements and manufacturing capex expansion.
4. BSE: Surprising Buy Despite Its Size
- Institutional Qty Bought: 935,353 shares
- Current Price: ₹7,148
- Market Cap: ₹96,767 Cr
- ROE: 34.1%
Although not a smallcap, BSE’s inclusion is notable. Its attractive PE of 53.5 and a Graham number near ₹849 signal continued confidence in its earnings potential. Institutions adding to BSE in this environment shows conviction in exchange-driven growth despite high valuations.
5. DHARIWAL: Strong ROE, Steady Demand
- Institutional Qty Bought: 591,600 shares
- Current Price: ₹151
- Market Cap: ₹135 Cr
- ROE: 80.1%
Dhariwal Industries Ltd boasts one of the highest ROEs among the list. With a balanced PE of 28.2 and favorable Graham metrics, this stock blends profitability with institutional appeal. Its consumer-centric product line may be fueling the quiet accumulation.
6. VAISHALI: Undervalued or Underwatched?
- Institutional Qty Bought: 591,452 shares
- Current Price: ₹12.3
- Market Cap: ₹132 Cr
- ROE: 1.73%
Vaishali Pharma Ltd attracted solid institutional flows, though its weak ROE and modest Graham number suggest speculative confidence rather than current profitability. This could be a long-term re-rating play in pharmaceuticals.
7. OLIL: Modest Cap, High Potential
- Institutional Qty Bought: 500,400 shares
- Current Price: ₹171
- Market Cap: ₹61.6 Cr
- ROE: 9%
Omkar Overseas Ltd has a compelling price-to-earnings profile and solid ROE. With a Graham number of ₹60, this stock is being accumulated as a potential compounder, especially in export-centric sectors.
8. SHANTI: Risky Bet With Negative ROE
- Institutional Qty Bought: 429,777 shares
- Current Price: ₹16.3
- Market Cap: ₹18.1 Cr
- ROE: -5.35%
Despite weak returns and financials, Shanti Educational Initiatives Ltd saw decent institutional buying. While this raises eyebrows, such interest could signal expected asset monetization or a turnaround plan in motion.
9. PHANTOMFX: Rising Star in Media Tech
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- Institutional Qty Bought: 400,000 shares
- Current Price: ₹242
- Market Cap: ₹329 Cr
- ROE: 25.5%
Phantom Digital Effects Ltd operates in a high-growth VFX and content creation segment. With strong fundamentals and a Graham number of ₹203, the stock’s institutional backing supports its trajectory in digital media expansion.
10. AGARWALTUF: Silent Performer in Industrial Space
- Institutional Qty Bought: 350,400 shares
- Current Price: ₹137
- Market Cap: ₹242 Cr
- ROE: 72.7%
Agarwal Float Glass India Ltd’s ultra-high ROE stands out. Though the Graham number isn’t available, its robust earnings and consistent delivery in industrial manufacturing have clearly caught institutional eyes.
Conclusion: Smallcaps Backed by Smart Money
Institutional buying in smallcaps often flies under the radar but can be a precursor to large-scale re-rating. The selections in May 2025 suggest a diverse basket—from penny stocks to niche industrials and digital disruptors—highlighting that the smart money is rotating into value and potential.
Investors should monitor these names closely, as historical data shows that institutional accumulation often precedes strong stock performance over 6-12 months. While not all may deliver, the odds improve when the big players are buying.
