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Good news for pricey stocks; 200 promoters just raised stakes

Promoters buying shares of their own companies is considered a good omen.

, ETMarkets.com|
Updated: Jul 21, 2017, 12.31 PM IST
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Promoters of commercial vehicles maker Ashok Leyland raised their stake to 51.29 per cent from 50.38 per cent during June quarter.
Promoters of commercial vehicles maker Ashok Leyland raised their stake to 51.29 per cent from 50.38 per cent during June quarter.
While the ongoing rally in the domestic equity market has induced fright of height and valuation concerns, the good news is that promoters of several smallcap and midcap companies have aggressively raised holdings during June quarter.

Promoters buying shares of their own companies is considered a good omen, as it often signals better prospects for the business going forward.

June quarter shareholding data available on corporate database Capitaline showed nearly 200 BSE-listed companies have seen promoters raise stakes during April-June 2017.

Good news for pricey stocks; 200 promoters just raised stakes

Promoters of commercial vehicles maker Ashok Leyland raised their stake to 51.29 per cent from 50.38 per cent during June quarter. The stock has surged 28 per cent to Rs 108.25 on July 17 from 84.55 on March 31, 2017. The country’s second largest commercial vehicles (CV) manufacturer is aiming for a 35 per cent market share this financial year.

Among others, Voltas, J&K Bank, Atul, TCS, DB Realty and Lupin have also seen promoter holdings go up during the quarter gone by.

Owners of Shakti Pumps, manufacturer of submersible pumps for domestic, industrial, horticultural and agricultural use, have increased their stake in the company from 45.69 per cent at the end of March quarter to 47.59 per cent as of June 30, 2017. The stock has risen 146 per cent since March 31, 2017

Promoters of Bhasali Engineering, a petrochemicals manufacturer, increased their holding from 55.69 per cent to 56.48 per cent during the quarter. Same was the case with two other companies, SKY Industries – manufacturer and supplier of knitted elastics , hook and loop tape fasteners – and Auro Labs – a manufacturer of pharma bulk drugs and active pharma ingredients. Stocks of the three companies have more than doubled investor wealth since March 2017.

Shares of Bhansali Engineering scaled all-time high of 84.60 on July 18 after June quarter net profit jumped 110 per cent to Rs 16.88 crore on a 52.3 per cent increase in net sales to Rs 224 crore.

Good news for pricey stocks; 200 promoters just raised stakes

Sectorwise, the auto ancillary space saw promoters raise stakes in Sona Koyo Steering (from 52.32 per cent to 77.44 per cent) and LG Balakrishnan (from 47.53 per cent to 47.56 per cent).

In the construction space, promoter holdings went up in Anant Raj, Man Infra, Nitesh Estates, Landmark Prop, Simplex Infra and Mahindra Lifespace Developers.

The logistics sector was in the news as one of the biggest beneficiaries of the GST, but TCL Express was the only logistics company where promoters increased stake during June quarter.

Since March 31, 2017, the company’s stock has risen 38.70 per cent to Rs 548.35 till July 17. Promoters increased stake from 66.09 per cent at the end of Q4FY17 to 66.13 per cent at the end of Q1FY18.

Promoters of multiplex operator PVR raised stake from 20.15 per cent to 20.25 per cent in June quarter. The company inaugurated Grand Galada Centre Mall, a five-screen multiplex in Chennai, during this period.

In the NBFC space, promoters of Can Fin Homes, Ceejay Finance, Frontline Securities and Kalyani Invest increased holdings during the quarter. Promoters of Shalimar Paints marginally increased stake from 62.30 per cent to 62.31 per cent.

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