Promoters usually belong to the top-level management of a company. They are the ones who have the best idea of what is happening in the company and can steer it to success. When the promoter stake is high or is increasing, it is considered that the promoters believe in the future of the company. While analysing stocks, investors check if the companies on their watchlist have a high promoter holding.
Here are a few stocks that have given multibagger returns in the past year and have a high promoter’s stake:
Mahindra CIE Automotive
Mahindra CIE Automotive is engaged in producing and selling automotive components to original equipment manufacturers and other customers in India and overseas.
It is a small-cap company with a market capitalization of ₹ 15,084 crores and its promoters hold a 74.96% stake in the company.
The company’s share price increased from ₹ 196.15 to ₹ 396.20 apiece, giving multibagger returns of 101.99% in one year. Therefore, if an investor would have invested 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 2.02 lakhs today!
Madhya Bharat Agro Products
Madhya Bharat Agro Products is a part of the Ostwal Group. It is engaged in the business of manufacturing fertiliser and chemical products.
It is a small-cap company with a market capitalization of ₹ 2,774 crores and its promoters hold a 74.31% stake in the company.
The company’s share price increased from ₹ 125.73 to ₹ 627.00 apiece, giving multibagger returns of 398.69% in one year. Therefore, if an investor would have invested 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 4.98 lakhs today!
Kewal Kiran Clothing
Kewal Kiran Clothing is engaged in the manufacturing, marketing and retailing of branded readymade garments and finished accessories. It has consumers in Asia, the Middle East and CIS (Commonwealth of Independent States).
It is a small-cap company with a market capitalization of ₹ 2,735 crores and its promoters hold a 74.25% stake in the company.
The company’s share price increased from ₹ 203.35 to ₹ 445.90 apiece, giving multibagger returns of 119.28% in one year. Therefore, if an investor would have invested 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 2.19 lakhs today!
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
