INSUBCONTINENT EXCLUSIVE:
Promoters raising stake in a company is considered a good signal of business prospects
But what if domestic and foreign institutions also follow in the footsteps of the promoters and raise their holdings Does it make the stock
a sure-shot bet
Data available with corporate database Capitaline showed over 10 companies witnessed simultaneous increase in shareholdings
by owners, mutual fund houses as well as foreign portfolio investors (FPIs) during the January-March period
And they included established
names such as Tata Steel, Godrej Properties and MOIL
Promoters in Tata Steel increased their stake to 33.21 per cent by the end of March quarter from 31.35 per cent at the end of December
quarter, whereas mutual funds and FPIs raised their holdings to 13.67 per cent and 18.50 per cent, respectively, from 12.88 per cent and
17.06 per cent.
German steel giant Thyssenkrupp expects to finalise its proposed joint venture with Tata Steel Europe by the end of this
Last September, the companies had announced plans to combine their European operations and form an equal joint venture, creating Europe's
second largest steelmaker after ArcelorMittal.
Brokerage Prabhudas Lilladher is positive on Tata Steel and has a target price of Rs 835
Tata Steel shares have jumped 41 per cent in last one year till April 23, whereas those of Godrej Properties and MOIL have rallied 73.30 per
cent and 37 per cent, respectively, during this period.
Multibagger Bhansali Engineering (BEPL) is another stock on this list
The promoters were holding 55 per cent stake in the company as of March 31, 2018 against 54.69 per cent as of December 31, 2017.
MFs and
FIIs increased their holdings to 0.54 per cent and 2.25 per cent from 0.43 per cent and 1.57 per cent, respectively
The stock is up over 400 per cent in last one year
telecommunications, luggage and some other industries
For the year ended March 31, 2018, the company reported Rs 99.64 crore profit, up 179.64 per cent from Rs 35.63 crore reported for the
Its bottom line figures for FY16, FY15 and FY14 stood at Rs 16.69 crore, Rs 5.40 crore and Rs 1.48 crore, respectively
Brokerage Prabhudas Lilladher is positive on BEPL with a target price of Rs 266.
Among others, Ramkrishna Forgings, SP Apparels, Coffee Day
Enterprises, Plastiblends, Astec Life, Lumax Industries, Supreme Petrochem, GNA Axles and Shakti Pumps have also seen promoter, MF and FPI
holding go up during March quarter.
Shares of SP Apparels, Supreme Petrochem and Plastiblends are down up to 15 per cent in last one year
till April 20, whereas those of Astec Life and Coffee Day Enterprises have risen up to 31 per cent in the same period
Reliance Securities expects Ramkrishna Forgings to generate free cash flow of Rs 460 crore over FY18-FY20E aided by low capex requirement
The brokerage is positive on the stock with a target price of Rs 975
Shares of Ramkrishna Forgings are up 67 per cent in last one year
GNA Axles has more than doubled investor wealth in last one year
In a report released on April 16, brokerage Sharekhan advised investors to book profit on the stock and wait for a better price point to
