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These 14 stocks from the Nifty 500 universe saw an increase in promoter holding
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6 min read | Updated on June 14, 2024, 17:31 IST
SUMMARY
In Q4FY24, promoters added stakes in these companies. This skin in the game represents the confidence of promoters in their business.
Skin in the game: These 14 stocks from the Nifty 500 universe saw an increase in promoter holding
Analysing the promoters' stakes provides valuable insights into the company’s ownership structure, management commitment, market perception, corporate governance, and potential risks. For investors, understanding the level and changes in promoters' stake can help in making informed investment decisions and assessing the long-term potential and stability of the company.
If the promoters of a company think that its stocks are worth buying, then the possibility of the company doing well in the future is high. On the other hand, a company with a low promoter stake is usually looked upon cynically by investors.
Sometimes in bearish markets stock may not be valued by the market at fair terms, in such cases promoters tend to increase their stake in a company by purchasing shares as they are aware of the potential of the company.
Promoter’s stake ascertains the following indicators of a company
In Q4FY24, 14 stocks from the Nifty 500 index with market capitalisation above ₹20,000 crore saw an increase in promoter holding.
The promoter in Q4FY24 increased the stake by 4.80% to 32.86% from 28.06% in the quarter ended December 2023. The stock currently trades at P/E 26.3 lower than its peers. In 2024, the stock climbed by 64.5%. While the company's consolidated net profit for FY24 increased 30% from ₹694 crore in FY23 to ₹906 crore in FY24. The EPS went up in FY24 to ₹49.49 from ₹40.65 in FY23.
Ambuja Cements is among the leading cement companies in India. It is a member of the Adani Group. Currently, Ambuja Cement has a cement capacity of 31 million tonnes with six integrated cement manufacturing plants and eight cement grinding units across the country.
The company’s Q4FY24 result saw an increase in consolidated net profit by 40% at ₹1,526 crore. The company has substantial promoter holding. The ratios of the company are also better than peers with YoY sales growth at 11.65%, ROCE at 11.18% and ROE at 8.63%.
As of March 2024, ICICI Lombard has a 10.50% market share in auto insurance and it derived about 56% of revenue from this segment. For FY24 the company has reported strong results with consolidated net profit increasing to ₹1,919 crore in FY24 from ₹1,729 crore in FY23.
The financial performance of the company seems strong with net profit in FY24 increasing by almost 30% from ₹2,084 crore to ₹2,693 crore in FY23. The margins of the company remained steady at 12%.
Below table provides an overview of a substantial increase in promoter holding in Q4FY24 for Nifty 500 companies that have a market capitalization above ₹20,000 crore.
| Name | Industry | Promoter Holding as of 31st December 2024 | Promoter Holding on 31st March 2024 | % Change in Promoter Holding |
|---|---|---|---|---|
| Amara Raja Energy & Mobility Ltd | Auto Ancillaries | 28.06% | 32.86% | 4.80% |
| Ambuja Cement | Cement - North India | 63.19% | 66.74% | 3.55% |
| ICICI Lombard | Finance & Investments | 47.91% | 51.27% | 3.36% |
| Jindal Stainless Steel | Steel - Large | 58.69% | 60.49% | 1.80% |
Source: Screener
Below table provides minor change promoter stake holding in some Nifty 500 companies in Q4FY24 with a market capitalization above ₹20,000 crore.
| Name | Industry | Promoter Holding as of 31st December 2024 | Promoter Holding on 31st March 2024 | % Change in Promoter Holding |
|---|---|---|---|---|
| Grasim Industries | Textiles - Man Made | 42.75% | 43.06% | 0.31% |
| The Ramco Cement | Cement - South India | 42.11% | 42.29% | 0.18% |
| Bajaj Auto | Automobiles - Scooters And 3 - Wheelers | 54.95% | 55.06% | 0.11% |
| Kalyan Jewellers | Diamond Cutting / Jewellery | 60.55% | 60.63% | 0.08% |
| Poonawalla Fincrop | Finance & Investments | 62.07% | 62.13% | 0.06% |
| State Bank of India | Banks - Public Sector | 57.49% | 57.54% | 0.05% |
| Uno Minda | Auto Ancillaries | 68.73% | 68.76% | 0.03% |
| Axis Bank | Banks - Private Sector | 8.20% | 8.22% | 0.02% |
| Apollo Tyres | Tyres | 37.34% | 37.36% | 0.02% |
| MRF | Tyres | 27.76% | 27.78% | 0.02% |
Source: Screener
A minor stake increase was also seen in Q4FY24, with an increase in promoter holding in select Cement, Tyres, Banking, Auto & auto ancillaries companies.
In the banking space, the State Bank of India and Axis Bank‘s promoter marginally rose the stake by 0.05% and 0.02%, respectively.
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