High Promoter Holding Stocks under Rs 50: There are various parameters such as debt level, RoE, etc. investors keep in mind while screening stocks. One such filter is ‘promoter stake’ or ‘promoter shareholding’ in the stock.
A high promoter stake acts as a vote of confidence of the company owners towards the business. But with so many listed stocks, how to find out the best among them? In this article, we’ll study some of the top high promoter holding stocks under Rs 50.
High Promoter Holding Stocks Under Rs 50
For our study, we’ll read about the business and operations of five companies from various industries such as power generation, financial services, and textiles. Furthermore, we’ll briefly talk about their financials. So without further ado, let us jump in.
High Promoter Holding Stocks under Rs 50 #1 – NHPC
|CMP||₹50||Market Cap (Cr.)||₹50,074|
|EPS (TTM)||₹3.9||Stock P/E (TTM)||₹12.8|
|Promoter Holding||71.0%||Dividend Yield||4.6%|
|Debt to Equity||0.8||Price to Book Value||1.33|
|Operating Profit Margin||55.3%||Net Profit Margin||39.9%|
NHPC is a Mini-Ratna category-I status public sector company engaged in the development of hydropower projects in India. It oversees end-to-end activities of conceptualization to commissioning of hydro projects. Furthermore, in recent fiscals, it has also ventured into green energy generation through wind & solar power.
The company was set up close to 5 decades ago in 1975. As of the current date, NHPC operates 24 power generation stations with an installed capacity of 7,071 MW out of which two are via the joint-venture route.
The hydro-power developer is aggressively investing towards increased power generation capacity. It has multiple projects under construction with a cumulative capacity of 10,515 MW. Along these lines, it spent Rs 6,961 crore in FY23 towards capital expenditure on a consolidated basis and plans to deploy Rs 10,857 crore in FY24 for the same.
As part of its green energy initiatives, NHPC is also executing multiple solar and wind energy projects standalone as well as on a joint venture basis.
Talking about its financials, NHPC earned a net profit of Rs 3.889.98 crore on sales of Rs 10,607.4 crore in FY23. It has a high promoter holding of 71% and presently trades at a P/E of 12.8.
High Promoter Holding Stocks under Rs 50 #2 – Ujjivan Small Finance Bank
|CMP||₹49||Market Cap (Cr.)||₹9,855.42|
|EPS (TTM)||₹6.3||Stock P/E (TTM)||₹7.9|
|Promoter Holding||73.7%||Dividend Yield||4.9%|
|Net NPA||0.04%||Price to Book Value||2.26|
|Net Interest Margin||8.4%||Net Profit Margin||26.4%|
Ujjivan Small Finance Bank (Ujjivan SFB) was established in 2015 when the Reserve Bank of India gave in-principle approval to Ujjivan Financial Services Ltd. to set up a small finance bank.
In the last eight years, Ujjivan SFB has emerged as a leading financial services provider to the unserved and underserved segments of India’s population. It had total deposits of Rs 25,538 crore and a gross loan book of Rs 24,085 crore at the end of FY23 respectively.
It offers a wide range of services such as digital banking, affordable housing loans, savings accounts, fixed & recurring deposits, MSME loans, current accounts, and more to personal, business, corporate, rural, and NRI customers.
Ujjivan SFB had 629 banking outlets and 517 ATMs serving 76.9 lakh customers at the end of FY23. It employs 17,870 people and has built a presence in 271 districts across 25 states and union territories of the country.
Talking about its financials, its net income grew by a staggering 52% year on year (YoY) to Rs 2,698 crore in FY23 from Rs 1,774 crores in FY22. During this period, its asset quality improved significantly with GNPA coming down to 2.6% from 7.1% and NNPA reducing to 0.04% from 0.6% respectively.
High Promoter Holding Stocks under Rs 50 #3 – IRFC
|CMP||₹48||Market Cap (Cr.)||₹62,532|
|EPS (TTM)||₹4.8||Stock P/E (TTM)||10.03|
|Promoter Holding||86.4%||Dividend Yield||3.1%|
|Debt to Equity||9.2||Price to Book Value||1.38|
|Operating Profit Margin||99.6%||Net Profit Margin||26.5%|
Another Miniratna status company in the list, Indian Railway Finance Corporation (IRFC) was founded in 1986 to act as a financing arm for the projects of Indian Railways. The Ministry of Railways, Government of India exercises administrative control over IRFC as it holds a majority 86.4% promoter stake in the company.
It borrows funds from domestic as well as overseas institutions to fulfil expenditure requirements. In addition to this, it also leases the assets of the government and railways infrastructure for monetization.
The railway financier has arranged funds for multiple railway institutions in India including Konkan Railway Corporation Limited, Rail Land Development Authority, Railtel Corporation of India, Rail Vikas Nigam Limited (RVNL), and Pipavav Railway Corporation.
The NBFC makes use of multiple financing options such as commercial papers, term loans, external commercial borrowings (ECBs), taxable and tax-free bond issuances, etc.
Its revenue from operations increased by 17.70% year on year from Rs 20,298.27 crore in FY22 to Rs 23,891.27 crore in FY23. It reported a profit after tax of Rs 6,337.01 crore in the latest fiscal year giving a return on equity of 13.9% to its investors.
High Promoter Holding Stocks under Rs 50 #4 – Trident
|CMP||₹38||Market Cap (Cr.)||₹18,182|
|EPS (TTM)||₹0.8||Stock P/E (TTM)||44.9|
|Promoter Holding||73.2%||Dividend Yield||1.3%|
|Debt to Equity||0.8||Price to Book Value||4.24|
|Operating Profit Margin||14.9%||Net Profit Margin||7.0%|
Founded in 1990, Trident is a yarn and textiles manufacturing company with a global presence. As of the present date, it is the largest wheat straw-based paper and terry towels manufacturer in the world.
It manufactures and markets a variety of products such as bedsheets, rugs, pillows, quilts, mats, writing & printing maplitho paper, and scritta & offset paper to retail customers as well as businesses.
In addition to this, in the recent fiscals, Trident has diversified into three other business segments: paper, chemicals and energy generation. As a result, it is also referred to as the Trident Group.
It is powered by a dedicated workforce of more than 13,000 employees. The company exports its products to more than 150 nations across the globe.
Talking about its financials, it earned a total income and net profit of Rs 6,291.3 crore and Rs 421.9 crore in FY23 respectively. The stock which has a high promoter holding of 73.2% presently trades at a P/E ratio of 44.9 and a P/B ratio of 4.24 respectively.
High Promoter Holding Stocks under Rs 50 #5 – Indian Overseas Bank
|CMP||₹31||Market Cap (Cr.)||₹58,862|
|EPS (TTM)||₹1.2||Stock P/E (TTM)||₹26.6|
|Promoter Holding||96.4%||Dividend Yield||0.0%|
|Net NPA||1.83%||Price to Book Value||2.60|
|Net Interest Margin||2.8%||Net Profit Margin||10.8%|
Owned by the Government of India, the Indian Overseas Bank was set up 86 years ago in 1937 by Shri. M.Ct.M. Chidambaram Chettyar. It was later nationalized in 1969. The government presently holds a majority of 96.4% stake making it a PSU bank.
As a universal bank, IOB offers a broad range of banking and financial services including banking accounts (savings & current) accounts, insurance (life, health, & motor), loans (retail, mortgage, education, personal, business & working capital), digital banking, foreign exchange, merchant banking, mutual funds and more to its individual, MSME, and corporate customers.
IOB had a strong domestic network of 3,477 ATMS, 3,220 branches, and 3,190 business correspondents at the end of FY23. Furthermore, the bank is playing a pivotal role in uplifting financial inclusion among the rural and semi-urban populations as 58% of its branches are in these areas.
Furthermore, it has 4 branches outside India. All this allows banking to serve over 40 million active clients with a strong foothold in Tamil Nadu, India.
Its net interest income increased by 30.80% year on year to Rs 8,255 crore in FY23 from Rs 6,311 crore in FY22. At the same time, its net profit grew by 22.76% to Rs 2,099 crore in FY23 from Rs 1,1710 crore last year. Its RoE stood at 10.03% and NNPA at 1.83% in FY23.
List of High Promoter Holding Stocks Under Rs 50
Above we learnt about high promoter holding stocks under Rs 50. The table below puts together the names covered above along with a few others.
|Company Name||CMP||Promoter Shareholding||Market Cap (Cr)||Industry|
|Ujjivan Small Finance Bank||₹50||73.7%||₹9,855.42||Financial Services|
|Shree Renuka Sugars||₹45||62.5%||₹9,599||Sugar|
|Bank of Maharashtra||₹38||86.5%||₹25,845||Banking|
|Punjab & Sind Bank||₹35||98.3%||₹23,973||Banking|
As we conclude our article on ‘high promoter holding stocks under Rs 50’, we can say that government companies usually have high promoter stakes. However, investing in stocks solely on the basis of promoter shareholding is not right. Investors must assess a stock across multiple parameters independent of promoter stake.
What metrics do you keep in mind while picking stocks? How much weightage do you give to promoter stakes while doing fundamental analysis? How about we continue this conversation in the comments below?
Written By Vikalp Mishra
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