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: