High Promoter Holding Stocks Under Rs 500: If you have stakes in the game, the stakes are higher. We will look into some companies that share confidence due to high promoter stakes as well as affordable prices to buy quality stocks.
Here, we will take a look at the High Promoter Holding Stocks Under Rs 500, their business details, financials, future prospects & more
Table of Contents
High Promoter Holding Stocks Under Rs 500 #1- Sumitomo Chemical India
The company was founded in 1913 as a subsidiary of Japan-based Sumitomo Chemical Co. Ltd. (SCC). The parent company (Sumitomo of Japan) holds 75% of the shares, the remaining 16.98% is held by the public, 2.51% by FIIs, and 5.51% by DIIs.
They are engaged in the production and trading of products for crop protection, household pesticides, animal nutrition, and fumigants.
As the company is into generic and chemical specialties the business is seasonal and fluctuates based on climate factors for agriculture. Recently their revenue has increased significantly in the specialty segment from 25% to 29% while their generic segment contributes over 70% of their revenue.
Sumitomo earns the majority of its revenue domestically (India) – 80% to 86%, South America – 4% to 7%, Others – 13% to 14%. Exports have contributed nearly 25% of their revenue and the geographic segment is diversified. They aim to increase the exports to reach more countries as well.
The company reported 3,510.97 cr in FY23 as compared with 3,061.22 cr in FY22 which portrays a 14.69% increase in revenue and with Net Profit they grew to 502.21 cr in FY23 from 423.55 cr in FY22 an increase of 18.57%. Net Profit growth is due to an increase in other income as well as the reduction in Interest cost.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 413.8 | Market Cap (Cr) | Rs.20,497 |
| EPS | 8.53 | Stock P/E | 49.93 |
| RoE | 23.31% | RoCE | 30.65% |
| Promoter Holding | 75% | DII Holding | 5.51% |
| Debt to Equity | 0 | Price to Book Value | 8.61 |
| Net Profit Margin | 14.30% | Operating Profit Margin | 19% |
High Promoter Holding Stocks Under Rs 500 #2 – EIH Associated Hotels
Hotels are the epitome of hospitality in India. The company was founded in 1983 under the name Pleasent Hotels Ltd later changed to EIH Associates Ltd in 1989 with a Promoter Holding of 75% by Oberoi Group and Family and the remaining 13.75% with FII, 11.25% with Public.
The company’s line of business is hospitality, and it generates income from 8 hotels in India, including 2 hotels operated by Oberoi Hotels and 6 hotels operated by Trident Hotel Group.
Revenue comes from 65% from Rooms, 30% from Foods and beverages, and 5% from Other Services. The occupancy rate has increased as new airports have opened and the per capita growth has enabled luxury hotels to grow.
In FY23, the company reported revenue of Rs. 337.07 cr from Rs.195.19 cr in FY22 indicating an increase of 42%. Net Profit grew to Rs.64.62 cr in FY23 from Rs.12.88 cr in FY22 with an increase of 401%. The growth in Net profit often fluctuates as business is cyclical and due to the opening up of the economy after the initial lockdown the growth in earnings is exceptional.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 456.65 | Market Cap (Cr) | Rs.1,344.1 |
| EPS | 21.72 | Stock P/E | 22.07 |
| RoE | 17.73% | RoCE | 23.39% |
| Promoter Holding | 75% | DII Holding | 11.25% |
| Debt to Equity | 0 | Price to Book Value | 3.62 |
| Net Profit Margin | 19.17% | Operating Profit Margin | 28.09% |
High Promoter Holding Stocks Under Rs 500 #3 – Bikaji Foods International
Snacks can overcome boredom by just munching on the savories. Bikaji Foods was established in 1993 by Mr.Shiv Ratan Agarwal. The company is 75.21% held by Promoters, the remaining 13.55% from DII, 7.02% from FII, and 4.22% from the public.
The company earns its revenue from Food Products like Ethnic snacks, Packaged Sweets, Papads, and Western Snacks with a geographic segment comprising from Domestic – 97% to International – 3%.
Bikaji is looking forward to endorsing the brand by marketing through social media, movie sponsorships, and expansion of business through acquiring market share from getting distributors onboard, releasing more products in the pipeline, and increasing presence across India as their presence is highly concentrated in the North region.
In FY23, Bikaji posted revenue of Rs.1,966.07 cr from Rs.1,610.96 cr in FY22 with an increase of 22%. Net profits in FY23 rose to Rs.126.60 cr from Rs.76.03 cr in FY22 with an increase of 66.51%. The rise in net profit was due to a rise in operating profit margin from 8.7% in FY22 to 10.9% in FY23.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 549 | Market Cap (Cr) | Rs.13,562 |
| EPS | 6.16 | Stock P/E | 78.23 |
| RoE | 14.38% | RoCE | 17.66% |
| Promoter Holding | 75.21% | DII Holding | 13.55% |
| Debt to Equity | 0.15 | Price to Book Value | 12.14 |
| Net Profit Margin | 6.44% | Operating Profit Margin | 10.89% |
High Promoter Holding Stocks Under Rs 500 #4 – Nippon Life India Asset Management
Mutual Fund Sahi Hai! This term always popped up in advertisements and Marketing campaigns encouraging more people to invest in Mutual Funds, One of the beneficiaries is Nippon Life India Asset Management. The company was established in 1995. Currently with an AUM of Rs.3,62,981 cr and a Mutual fund AUM of Rs.2,86,873 cr as of March 31, 2023. The promoter stake is 73.47% held by Nippon Life Insurance Co followed by 14.57% by DII, 6.90% by the public, and 5.06% by FII.
Nippon earns revenue 97.7% from Management Fees remaining 2.21% from Portfolio Management Fees as per FY23. India is one of the most under-penetrated markets standing at 14% in AUM to GDP which is significantly lesser than the world average of 60% as the company needs to cash in the market share by up-selling methods and increasing awareness to the general public to invest.
Nippon reported Rs. 1,349.82 cr in FY23, an increase of 3.3% from Rs. 1306.63 cr in FY22. Their Net Profits increased from Rs.743.36 cr in FY22 to Rs.722.93 cr in FY23, a de-growth of 2.74%. The SEBI’s capping of commission fees is the cause of the low growth in revenue, and the only option to enhance earnings is through growing the customer base.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | Rs.445.5 | Market Cap (Cr) | Rs.27,751 |
| EPS | 13.52 | Stock P/E | 28.04 |
| RoE | 21.40% | RoCE | 26.64% |
| Promoter Holding | 73.47% | DII Holding | 14.57% |
| Debt to Equity | 0 | Price to Book Value | 6.53 |
| Net Profit Margin | 53.56% | Operating Profit Margin | 58.81% |
High Promoter Holding Stocks Under Rs 500 #5 – Kansai Nerolac
Colors can have a calm effect on the mind. It enhances productivity, vibrant, and creativity. Kansai Nerolac was established in 1920. Gahagan Paints & Varnish was the name used at first, but as promoters changed over the years, the name changed as well. Kansai Paint Co. in Japan has 74.99% of its promoter shares, followed by DII holdings at 12.30%, the public at 8.5%, and FII holdings at 4.21%.
As a result of the government’s ethanol blending initiative in petrol, Nerolac’s business can grow to take advantage of the reduced cost of raw materials for painting, and Launching a new product line can boost revenue in the decorative category.
In FY23, the company reported revenue of Rs. 7,542.73 crore, up from Rs. 6369.35 crore in FY22. Sales are up 19% YoY due to discounts, which grew less than sales by 15.85% YoY. The revenue is entirely derived from the core business.
Net Profits increased by Rs. 468.47 cr from Rs. 343.15 cr in FY22 to Rs. 468.47 cr in FY23, or 36.52%. Operating Margin increase resulted in Net Profit growth aided by improvement in the Automotive and Decorative Business.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | 330.25 | Market Cap (Cr) | Rs.26,098 |
| EPS | 13.05 | Stock P/E | 24.55 |
| RoE | 10.82% | RoCE | 14.71% |
| Promoter Holding | 74.99% | DII Holding | 12.30% |
| Debt to Equity | 0.04 | Price to Book Value | 4.9 |
| Net Profit Margin | 6.21% | Operating Profit Margin | 10.84% |
List of High Promoter Holding Stocks Under Rs 500
The List below contains some of the High Promoter Stakes below Rs 500.
| Stock Name | CMP | Market Cap | Promoter Holding |
|---|---|---|---|
| Sumitomo Chemical India | Rs.415.2 | Rs.20,497 | 75% |
| EIH Associated Hotels | 456 | 1,344.1 | 75% |
| Bikaji Foods International | Rs.548.8 | Rs.13,562 | 75.21% |
| Nippon Life Asset Management | Rs.444.4 | Rs.27,751 | 73.47% |
| Kansai Nerolac Paints | Rs.330.2 | Rs.26,098 | 74.99% |
| Automotive Stampings and Assemblies | Rs.413 | Rs.653.61 | 75% |
| GE T&D India Ltd. | Rs.405 | Rs.10,366.04 | 75% |
| Varroc Engineering Ltd. | Rs.492.95 | Rs.7,558.34 | 75% |
| Remsons Industries Ltd. | Rs.461 | Rs.263.39 | 75% |
| Aditya Birla Sun Life AMC Ltd. | Rs.443.6 | Rs.21,408.36 | 86.49% |
Conclusion
We come to an end after looking into 5 companies in brief. There are more hidden gems in the treasure of the stock market, just keep looking till you get comfortable choosing stocks on your own research or with a financial advisor. Let us know your views on these companies in the comment section below.
Written by Santhosh
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