Stocks with Consistently Rising Promoter Holding? Here’s a Watchlist for You to Track

livemint.com:

Promoter buying usually indicates that markets have priced in a lot worse in the stock than what is warranted. Of all the stakeholders, it's the promoters who know the most about their businesses and future potential. If they are willing to part with their personal money to buy stocks from the open market, there is a good possibility that they believe the stock is undervalued and will potentially rise in the future.

Keeping that in mind, let’s take a look at five stocks that have seen consistent promoter buying. These companies are filtered using Equitymaster’s Indian stock screener and have witnessed promoter buying in more than four consecutive quarters. First on the list is KDDL, a company that manufactures watch components like dials, hands, and precision engineering goods under the brand name, Eigen.

It’s a leading global supplier of watch dials, serving many well-known brands all over the world. In the past 4 quarters, promoters of the company have consistently bought shares in the open market. Have a look at the image below…   Next on the list is UY Fincorp, erstwhile known as Golden Goenka.

The Kolkata-based company is involved in the NBFC space. It primarily focuses on providing inter-corporate loans, personal loans, and investments and trading in securities. Promoters of the company have increased their stake for more than 6 quarters now.

Have a look at the image below… Within a year, promoters have increased their stake by more than 5%. FIIs and domestic institutional investors, meanwhile, have largely stayed away from the stock. For the year ended March 2023, the company more than doubled its net profit to ₹775 m as compared to ₹321 m last year.