Stock Ideas

Should you buy into a company when its promoter hikes stake?

We analysed some companies where the promoters have hiked stake in the last four quarters by more than 3%. Read on to find more on these companies

Should you buy into a company when its promoter hikes stake?

Promoters know their businesses better than the best analyst. It is for this reason that when they increase stakes in their own companies, it is tracked by other category of investors too. We analysed companies where the promoters have in the past 12 months increased stakes in their own companies. We looked at non-finance companies with market capitalisation above Rs 100 crore where the promoter holdings have increased substantially (>3.0 per cent) in the last four quarters (as per the creeping acquisition norms, the promoters holding >25 per cent of their company, can acquire additional 5 per cent in one financial year, which is why if in some cases if the shareholding increase is >5 per cent it is because this is over four quarters spanning FY18 & FY19).


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