No one probably knows companies as well as their promoters. If they hike stake in their companies, it’s a sign that the stock could be trading below its intrinsic value. As an investor, should you look at companies where promoters have hiked their stake?
“It does show an owner’s confidence in the business but it should not be the sole criterion for an investment decision — it can be a starting point. An investor needs to understand the reasons behind the promoter’s decision,” Sanjiv Bhasin, executive vice-president, market and corporate affairs, IIFL. In the past quarter (October-December), about 56 promoters
