Promoters of the company reducing their stake in mid-cap stocks, can create short-term selling pressure and raise concerns about their commitment to the company’s future. This may lead to a decline in stock prices. However, increased interest from institutional investors can help support the stock.
Listed below are four such mid-cap stocks in which Promoters have decreased their stake:
ZF Commercial Vehicle Control System India Limited
ZF Commercial Vehicle Control Systems India Limited manufactures air brake actuation systems and related technologies for commercial vehicles.
It provides advanced and conventional braking systems, alongside software development services. The company operates in the automotive segment with five manufacturing facilities and a subsidiary, ZF CVCS Manufacturing India Pvt Ltd.
In the quarter ended June 2024, Promoters decreased their stake in ZF Commercial Vehicle Control Systems India Limited from 75 percent in the March quarter, of 2024, to 67.49 percent stake in June 2024. This reduction of 7.51 percent can signal a lack of confidence in the stock’s prospects.
In Q1 FY25, ZF Commercial Vehicle Control Systems reported a 2.3 percent year-over-year decrease in revenue from operations to Rs.938 crore and a 1 percent decrease in net profit to Rs.99 crore, in the same period.
In Friday’s trading session, the company’s share price closed at Rs.15,410 per share, a 0.43 percent fall from its previous close.
Gland Pharma Limited
Gland Pharma Ltd specializes in complex injectables and is engaged in the sterile injectables, oncology, and ophthalmology segments. The company provides contract development, own development, dossier preparation and filing, technology transfer, and manufacturing across a variety of delivery systems.
In the quarter ended June 2024, Promoters decreased their stake in Gland Pharma Ltd from 57.86 percent in the March quarter, of 2024, to 51.83 percent stake in June 2024. This reduction of 6.03 percent in promoter holding may be seen as an opportunity by some institutional investors.
In Q1 FY25, Gland Pharma Ltd reported a 16 percent year-over-year increase in revenue from operations to Rs.1,402 crore, but saw a 26 percent decrease in net profit to Rs.144 crore, in the same period.
In Friday’s trading session, the company’s share price closed at Rs.2,052.55 per share, 1.31 percent higher than its previous close.
Jupiter Wagons Limited
Jupiter Wagons Ltd. is primarily involved in manufacturing metal fabrication, which includes load bodies for commercial vehicles, rail freight wagons, and various components.
Promoters decreased their stake in Jupiter Wagons Ltd. from 70.12 percent in the June quarter, of 2024, to 68.11 percent stake in July 2024. This reduction of 2.01 percent can signal a lack of confidence in the stock’s prospects.
In Q1 FY25, Jupiter Wagons Ltd. reported a 19 percent year-over-year increase in revenue from operations to Rs.895 crore and a 39 percent increase in net profit to Rs.89 crore, in the same period.
In Friday’s trading session, the company’s share price closed at Rs.553.6 per share, a 0.26 percent fall from its previous close.
Lloyd Metals & Energy Limited
Lloyds Metals & Energy Ltd is in the business of manufacturing Sponge Iron, Power generation, and mining activities.
Promoters decreased their stake in Lloyds Metals & Energy Ltd from 65.69 percent in the June quarter, of 2024, to 63.49 percent stake in July 2024. This reduction of 2.2 percent can signal a lack of confidence in the stock’s prospects.
In Q1 FY25, Lloyds Metals & Energy Ltd reported a 23 percent year-over-year increase in revenue from operations to Rs.2,417 crore and a 38.2 percent increase in net profit to Rs.557 crore, in the same period.
In Friday’s trading session, the company’s share price closed at Rs.764.2 per share, 3.9 percent higher than its previous close.
Written by – Siddesh S Raskar
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