Promoter holding refers to the stake held by promoters, i.e., persons who founded the company or are currently controlling its daily affairs. They are typically the largest shareholders in a company and play an instrumental role in its growth and success. Promoters may hold shares in a company in their individual capacity or through trusts.
Promoters are regulated by the Securities and Exchange Board of India, which mandates them to disclose their shareholding in a company and any changes to it from time to time.
Here are a few multibagger mid-cap stocks which have a high promoter holding of more than 55 percent:
Apar Industries
Apar Industries is a market leader contributing to India’s process of electrification. It started from manufacturing power transmission cables to having three broad business segments, which are conductors, transformer and speciality oils (TSO), and power/telecom cables. The company’s promoters hold a 60.64 percent stake in it.
In the past year, the company’s share price increased from ₹ 1188.05 to ₹ 4723.95, by 297 percent to deliver multibagger returns. Thus an investment of ₹ 1 lakh in the company’s shares a year ago would be worth ₹ 3.97 lakhs today.
Kalyan Jewellers
Kalyan Jewellers manufactures and sells a range of gold, studded and other jewellery products across various price points. It is one of the largest jewellery retailers in India. The company’s promoters hold a 60.55 percent stake in it.
In the past year, the company’s share price increased from ₹ 70.80 to ₹ 222.50, by 214 percent to deliver multibagger returns. Thus an investment of ₹ 1 lakh in the company’s shares a year ago would be worth ₹ 3.14 lakhs today.
Jindal Stainless
Jindal Stainless is one of the largest manufacturers of stainless steel flat products, in austenitic, ferritic, martensitic and duplex grades in India used in a variety of industries like automobiles, railways, construction, consumer goods and so on. The company’s promoters hold a 57.94 percent stake in it.
In the past year, the company’s share price increased from ₹ 130.05 to ₹ 412.35, by 217 percent to deliver multibagger returns. Thus an investment of ₹ 1 lakh in the company’s shares a year ago would be worth ₹ 3.17 lakhs today.
Written by Simran Bafna
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