Promoter holding is the percentage of a company’s shares owned by its founders, major stakeholders, or individuals who played a role in its formation.
Higher promoter holding reflects greater confidence and commitment from those who have had a significant impact on the company’s trajectory, and vice versa.
Promoters who increase their stake in a company often demonstrate their confidence in the company’s prospects; such actions frequently indicate a positive outlook for the company.
Penny stocks are shares of small publicly traded companies that trade at extremely low prices on the stock exchange. Because they are not widely traded, potential gains are usually determined by sudden increases in market volatility. Penny stocks are risky investments due to their lack of liquidity.
Here are 3 multi-bagger penny stocks with an increase in promoter holding up to 19.8% in December.
Pritika Auto Industries Ltd
Pritika Auto Industries Limited is an India-based company that manufactures tractors and automobile components. The company specializes in machined castings and automotive parts.
From 48.54% in September to 68.38% in December, the company promoter increased its stake by 19.8%. Retail investors hold 29.21%, and foreign institutional investors hold 2.41% of the company.
Pritika Auto Industries Limited is a multi-bagger stock, the share price has risen 117% in the last six months and 181% in the last year, for example, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.81 Lakh.
The company’s net profit decreased by 6.3% YoY from ₹100.04 crores in Q2FY23 to ₹93.7 crores in Q2FY24, while its net revenue decreased by 5% from ₹5 crores in Q2FY23 to ₹4.75 crores in Q2FY24.
The shares started Friday’s trading session on a flatter note at ₹52. During the trading session, the shares hit a low of ₹ 49.40, making a loss of around 5% and are currently trading at ₹49 apiece.
Bhandari Hosiery Exports Ltd
Bhandari Hosiery Exports Limited is a textile and garment manufacturing company based in India. The company manufactures dyed and kora knitted fabrics. Its business is in the textile industry.
The promoter’s stake increased by 11.5%, from 24.95% in September to 27.63% in December. The general public owns 72.37%, while foreign institutional investors reduced their holdings from 0.01% to 0%.
Bhandari Hosiery Exports Limited has risen 122% in the last six months and 114% in the last year, for example, if an investor invested ₹1 Lakh six months ago the current value would be ₹2.14 Lakh.
However, the September quarter saw a 10% YoY increase in the company’s net revenue, from ₹70.52 crores in Q2FY23 to ₹63.52 crores in Q2FY24, and a 7.1% increase in net profit, from ₹1.81 crores in Q2FY23 to ₹1.68 crores in Q2FY24.
The shares started Friday’s trading session on a lower note at ₹10.80. During the trading session, the shares hit a 5% lower circuit at ₹ 10.75 apiece.
Trans India House Impex Ltd
Trans India House Impex Limited is an Indian service-oriented export trading company. The company’s products include ceramic tiles, packaging, textiles and fabrics, dehydrated vegetables, and rice.
The promoter’s stake increased by 11.5%, from 59.18% in September to 61.54% in December and the general public owns 38.47%.
Trans India House Impex Limited has risen 119% in the last six months and 471% in the last year, for example, if an investor invested ₹1 Lakh a year ago the current value would be ₹5.71 Lakh.
Looking at Trans India House Impex Limited’s net revenue rose by 100% YoY from ₹14.79 crores in Q2FY23 to ₹29.67 crores in Q2FY24. Net profit of the company rose by 5.9% YoY from ₹0.67 crores in Q2FY23 to ₹0.71 crores in Q2FY24.
The shares started Friday’s trading session on a lower note at ₹ 41.62 compared to its previous close of ₹ 42.46. During the trading session, the shares hit a 2% lower circuit at ₹41.62 apiece.
Penny stock investing is highly volatile and risky. This article does not include any recommendations or financial advice. Penny stocks are volatile, illiquid, lack information, and are easily manipulated, so consult a financial advisor before investing.
Written by Sriram KV
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