Company promoters increasing stake consistently in last 4 quarters

Generally, the promoters or promoter groups are the ones who have major control over the company and may also hold senior executive positions. As a result, they are in a better position to understand the company’s day-to-day performance and future outlook. Thus, a higher promoter and promoter group shareholding is considered as an ideal.

Furthermore, increasing promoters’ stake indicates that they are convinced of the stock price being undervalued or perhaps, the company is likely to grow faster in the future.

Following is a list of companies whose promoters have increased the stake more than ~2 per cent YoY in June 2020 ended quarter. Also, we have added a market cap limit of minimum Rs 1,000 crore and the promoters stake should be increasing consistently in the last four quarters.

Source: Ace Equity

Likewise, we have also shortlisted companies whose promoters are decreasing their stake consistently in the last four quarters.

Source: Ace Equity

An increasing or decreasing trend of promoters' holding should not be the only criteria while selecting stocks as there may be numerous reasons for increasing/decreasing the stake of promoters in the company, like HDFC AMC's promoters are unloading shares to comply with the minimum promoter shareholding criteria. Thus, investors should also focus on other parameters while investing in any company.