INSUBCONTINENT EXCLUSIVE:
When the tide turned in the broader market during December quarter, at least eight stocks saw simultaneous buying by mutual funds, foreign
institutional investors and promoters, leading to a spike in their respective shareholdings.
These stocks are down up to 32 per cent from
their 52-week high price levels, but four have since risen up to 128 per cent in last one year
The Sensex, BSE Midcap Index and BSE Smallcap Index have gained 4-7 per cent during December quarter.
Raising of stake by promoters is
normally seen as a positive signal for a stock
When institutional investors follow in their footsteps, it is considered an icing on the cake.
The eight stocks are FMCG giant Godrej
Industries, pipemaker Welspun Corporation, electronics retailer Vaibhav Global, paper manufacturer West Coast Paper Mills, shipyards firm
Garden Reach Shipbuilders, transformer maker Voltamp Transformers, pumps producer WPIL and ferro alloys manufacturer Nava Bharat Ventures
These companies are yet to announce their December quarter earnings.
Godrej promoters raised stake to 61.39 per cent by the end of December
from 61.38 per cent at the end of September
Mutual funds and FPIs raised their holdings on the counter to 0.39 per cent and 11.99 per cent from 0.13 per cent and 11.90 per cent,
Shares of the company declined nearly 17 per cent to Rs 435.60 on January 22 this year from Rs 523 on the same day in 2019.
Some well-known
For instance, value investors Vijay Kedia and Ashish Kacholia held over 1 per cent stake each in Vaibhav Global as of December 31,
2019.
Promoters increased their holding in the firm to 58.23 per cent at the end of December from 57.28 per cent at the end of September
MFs and FIIs raised their holdings to 7.15 per cent and 12.38 per cent from 7.03 per cent and 12.33 per cent, respectively
cent rally in last one year, the state-owned Garden Reach Shipbuilders has been among the top gainers on the list
It was followed by Welspun Corporation (up 44 per cent) and Voltamp Transformers (up 18 per cent)
LIC held over 5 per cent stake in Garden Reach Shipbuilders as of December 31.
Shares of Garden Reach Shipbuilders and Voltamp Transformers
are down nearly 18 per cent and 5.50 per cent, respectively, from their respective 52-week highs
Shares of WPIL, Nava Bharat Ventures and West Coast Paper Mills have plunged 14-20 per cent in last one year
WPIL is engaged in producing pumps, pumps spares and accessories.
On Thursday, January 23, WPIL shares traded at Rs 671.20 against its
52-week high of Rs 1,000 scaled on May 23, 2019
West Coast Paper, Welspun Corp, Voltamp Transformers are down 5-19 per cent from their respective 52-week highs.
Brokerage Anand Rathi
Financial Services expects Voltamp Transformers to report 10.70 per cent year-on-year rise in net profit for Q3FY20 on an 8.60 per cent YoY
institutions is a reasonably good indicator that the business prospects are likely to be good if major players have increase stake in a
required quantity of shares from open market (retail investors) and prefer to go through bulk deals
So, if the promoter is not selling, you need to understand who is
Also, the size is important here
It helps understand the level of conviction
