As the previous article was too lengthy, so I thought of sharing certain stocks which are purely selected on Highest Promoter Holding. In case you’re not sure what is a penny stock and how risky they are and what criteria should we opt to choose the right. Then please refer to my previous article for a detailed understanding of the basics. Today’s article will cover the curated penny stocks based on the Highest Promoter Holding in 2023.
Before we look out which are those penny stocks that have the highest promoter holdings, it’s important to understand the significance of promoter holding and what does this mean?
Also Read Best Speciality Chemical Stocks in India 2023
Promoter’s Holding & Its Significance
As the name says, the promoter is someone who encourages and supports the company’s business. In other words, the promoter is the founder of the company who has actively involved themselves in the company’s business and supports the company’s functioning. These promoters hold high positions in the company and can have varying stakes in the company.
Whenever you refer to the shareholding pattern of the company, you will come across the term promoter holding. Which means how much stake these promoters hold in the company business. Generally, companies with high promoter holdings are very good picks. And there is some exception to this like HDFC Ltd and ICICI Bank which have zero promoters holding but doing fairly well.
Instead of checking their holding, we need to keep in mind who those promoters are. As they play important role in the success and growth of the company. In my opinion, companies with high promoter holdings are safe bets as I think it’s worth buying because when you believe in your selves you excel better. That’s why you didn’t rely much on outsiders thus the possibility of doing well in the future is high for such companies where promoter’s stakes are high.
This is not a hard and fast rule that you should stick to this and doesn’t guarantee the expected performance of the company based on promoter holders. Instead, you should look at the trend of increase or decrease of the shareholding pattern by promoters. Which offers you a more clear picture of the company’s performance. If you see a sudden decline in the promoter’s stake then it’s a red flag for you.
Penny Stocks with Highest Promoter’s Holding
Here are a few penny stocks curated based on the highest promoter holding which you can consider if this parameter tops your selection chart:
Caspian Corporate Services Ltd: This company tops the chart with the highest promoter holding of 74.95%. This company is established in 2011 and is in the business of advisory & consultancy. Having a market cap of Rs 20.2 Crore with a current price of Rs 6.51 and has touched a high as Rs.10 and is a debt-free company. The promising thing is that they have reduced their working capital requirement to 111 days from 355 days. Their sales figures amount to a 51% increase in the last three years and their return on equity is around 11% over a year.
Elcid Investment Ltd: This is also an NBFC firm under the category of investment firm. This company holds a stake of 2.95% in Asian Paints and currently, its share is trading at its peak of Rs.3.06. The company has booked promising profit growth of 23.3% CAGR over the last five years and it is a debt-free company. The company’s promoters hold a strong stake of 74.98%
Integrated Technologies Ltd: This company does business with printed circuit boards and this company is approved by the Government of India as a “100% Export Oriented Unit”. This status gives a competitive edge to ITL in terms of pricing their products. The market cap of the company is merely 1.95 crore but promoters have got a 75% stake with DII’s holding as 0.32% which gives confidence to investors as they have external investors too in their shareholding pattern which is very rare to find in penny stocks. This company is almost debt free.
Bottomline
This article re-instates the statement “A high promoter holding indicates that the promoters believe in the company’s future and want to profit from it.” If you too believe in this then you have chosen the right platform for any financial advisory.