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Mutual funds have been selling these 3 stocks for four straight quarters while retail investors are buying more. The numbers tell a surprising story.
Retail investors can often be seen following the lead of institutional money. But sometimes, they flip the script.
While mutual funds quietly trim their stakes, retail investors rush in — spotting what they believe are bargains, not red flags. It’s a curious divergence that says as much about conviction as it does about perception.
We ran the numbers to find such stocks where mutual funds have steadily reduced their holdings in each of the last four quarters, and retail investors have increased theirs just as consistently.
Then, we shortlisted the top three companies with the highest stake reduction by mutual funds between March 2024 and March 2025 (check the table below).
Let’s take a quick look at them.
Tatva Chintan is a specialty chemicals manufacturer based in Vadodara, producing over 214 niche products such as structure-directing agents (31 per cent of revenue), phase-transfer catalysts (33 per cent), and pharma/agrochemical intermediates (34 per cent) and electrolyte salts. Its portfolio caters to sectors including automotive, pharma, agrochemicals, coatings, paints and coatings, battery storage, etc. In FY25, exports made up 62 per cent of its revenue.
Headline numbers at a glance:
- Revenue fell 4 per cent per annum in the last three years (FY22-25).
- Operating profit (excluding other income) fell nearly 60 per cent per annum over this period.
- ROE was down to 1 per cent in FY25 from 43 per cent in FY21 due to profit decline and increase in equity post IPO.
- Cash flow from operations grew 6.8 per cent annually in the last three years.
Voltamp designs and manufactures energy-efficient transformers with over 70,000 installations across India and abroad. It serves a wide industrial base — from power and steel to data centres and green energy — and counts PSUs and EPC giants like L&T, Siemens, and GE among its long-term clients.
Headline numbers at a glance:
- Revenue grew 20 per cent per annum in the last three years.
- Operating profit (excluding other income) grew 39 per cent per annum over this period.
- Three-year median ROE of nearly 30 per cent
- Cash flow from operations grew 49 per cent annually in the last three years.
VST Industries, based in Hyderabad and founded in 1930, is India’s third-largest cigarette manufacturer. It markets popular brands like Charms, Charminar, Moments and Gold and continues to generate the bulk of its revenue from domestic and international tobacco sales. In FY25, exports made up 22.37 per cent of the company’s revenue.
Headline numbers at a glance:
- Revenue grew 6 per cent per annum in the last three years.
- Operating profit (excluding other income) fell 15 per cent per annum over this period.
- Three-year median ROE of 32 per cent
- Cash flow from operations fell 11.3 per cent annually in the last three years.
Retail bets big despite MF exit
| Company | MF stake (%) | Retail investors’ stake (%) | ||||
|---|---|---|---|---|---|---|
| Mar 2024 | Mar 2025 | YoY | Mar 2024 | Mar 2025 | YoY | |
| Tatva Chintan Pharma Chem | 12.8 | 5.3 | -7.5 | 10.5 | 16.9 | 6.4 |
| Voltamp Transformers | 26.3 | 21.3 | -5 | 8.5 | 12.5 | 4 |
| VST Industries | 14.1 | 5.6 | -8.5 | 15.9 | 26.5 | 10.5 |
Want to know which mutual funds are holding your stock investments? Head to our Who owns this stock? tool to find out.
Also read: 3 large caps still cheap after a three-yr rally of up to 41%
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