Majestic Auto

Hero Honda has once again come out with brilliant performance. I have been missing investing into this company for quite some time.

Another beneficiary of the stock price of Hero Honda is Majestic Auto. Majestic holds 16.25 lac shares of Hero Honda valued at 262 Cr, as of today, while it’s own M Cap is just 69 Cr. It also has other hidden assets like factory, land and other business interests. The company will also benefit by way of higher dividend – which Hero Honda should payout this year.

Changes in Promoter Holding

Promoter’s Holding form a very important part in the stock analysis. Stocks with large Promoter Holding generally shows that a business is run by a family.

The factor that usually works in favour of companies with large promoter holdings is the fair amount of confidence in the promoters. The reason is that promoters are holding a significant chunk of their stock and low free float always helps the stock rally up.

Thus when it was analysed by Business Line and Money Control, stocks with the large Promoter Holding (50%-80%) clearly out-performed the stocks with the lower Promoter Holding.

We would like to share a list of changes in Promoter Holding during the quarter. The names are interesting and surely worth a look:

Continue reading Changes in Promoter Holding