5 Small Cap Multibagger Stocks With A High Promoter

5 Small Cap Multibagger Stocks With A High Promoter

Multibagger stocks that have a high holding of promoters

Your best friend is the person you look for when you want to share a secret.

You confide your secrets to your best friend because you trust him. When you trust someone, you automatically place high expectations on them. This is the very nature of trust in social terms.

On the financial markets, confidence is observed in the promoters having a strong participation in their company. The promoter’s participation is a sign of trust.

Imagine, a company has the confidence of its promoters (high promoter participation), it has huge growth potential (it’s small cap), and it has delivered multibagger returns!

That would be rare, right?

So, in this article, we are talking about these rare stocks.

This article could be your answer on how to invest in multibagger stocks that are also fundamentally sound. High developer participation is one of the hallmarks of fundamentally strong stocks.

Read to find out which are the 5 small cap and multibagger stocks that have a high promoter stake.

#1 Adani Power

First on our list is Adani Power, one of the lesser known star players in the Adani group.

Adani Power is an Indian power and energy company, a subsidiary of Indian conglomerate Adani Group headquartered at Khodiyar in Ahmedabad, Gujarat.

It is a private producer of thermal energy, with a capacity of 12,450 MW. It also operates a 40 MW mega solar power plant in Naliya, Bitta, Kutch, Gujarat.

The promoters hold a large stake in Adani Power. As of September 2020, the promoters retain a nearly 75% stake in the company.

Of the 75% stake, 46% of the shares are held by Indian promoters and 29% of the shares are held by foreign promoters.

How did the company’s stock perform on the stock market?

Adani Power’s investors are very happy. Over the past year, Adani Power’s share price has jumped 310%.

This means that if you had invested Rs 1 million in Adani Power a year ago, you would have Rs 3.1 million today!

The stock was behaving in a range-bound pattern until February 2022. However, after that, Adani Power shares rallied like there was no tomorrow.

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In its latest quarterly results, Adani Power reported a 16x year-on-year increase in consolidated profit to Rs 47.8 billion, supported by healthy revenue and other income.

Consolidated operating income increased 109% year-on-year to Rs 137.2 billion.

Adani Power has been in the spotlight due to growing interest in renewable energy stocks. The company is one of India’s leading renewable energy stocks.

#2 BLS International Services

BLS International Services is an Indian provider of outsourcing services for government and diplomatic missions worldwide.

The company manages visa, passport, consular, attestation and citizen services for client governments and diplomatic missions in Asia, Africa, Europe, South America, North America and the Middle East. .

It also provides citizen services to state and provincial governments.

The promoters hold a significant stake in BLS International Services. By December, the promoters had maintained a high stake of 74.4% in the company. In June 2021, their total stake increased to 74.6%.

As of June 30, 2022, the total interest held by the promoters is 74.6%. All shares are held by Indian promoters.

So how did the BLS International Services stock perform on the stock market?

In 2022, BLS International Services jumped 144%. Over the past year, the company’s shares have risen 50%.

Recently, the company announced that it has entered into a partnership with UTI Infrastructure Technology and Services (UTIITSL) to support e-card printing services for the Government of India.

The company is now officially a PMJAY service agent.

He has also been authorized by the Royal Thai Embassy to provide visa services in Chennai.

The company will provide Thai visa application services. It will also provide several value-added services such as form-filling assistance, SMS tracking, photocopying and printing, travel insurance, and courier services.

#3 Gujarat Mineral Development Corporation

Gujarat Mineral Development Corporation (GMDC) is a major Indian state-owned mineral and lignite mining company based in Ahmedabad.

GMDC was founded in 1963. Its product line includes essential energy minerals like lignite, base metals and industrial minerals like bauxite and fluorspar.

The promoters hold a significant stake in GMDC. They have long held a 74% stake in the company. All shares are held by Indian promoters.

How has the stock performed on the stock market recently?

GMDC investors are rolling in the money. Over the past year, GMDC’s stock price has jumped 170%. This means that if you had invested Rs 1 million in GMDC a year ago, you have Rs 1.7 million today!

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For the March 2022 quarter, the miner reported a net profit of Rs 1.7 billion. The company had recorded a consolidated loss of Rs 1.8 billion in the prior year period.

It was on the back of increased revenue. The company’s consolidated revenue rose to Rs 11 billion from Rs 6.1 billion in the same period a year ago.

#4 Dynamic Bharat

Bharat Dynamics (BDL) is one of India’s manufacturers of ammunition and missile systems. It was founded in 1970 in Hyderabad, Telangana, India.

BDL was established to be a manufacturing base for guided weapon systems and started with a group of engineers from Indian munitions factories, DRDO and aerospace industries. He started by producing a first-generation anti-tank guided missile – the French SS11B1.

The promoters hold a significant stake in BDL. They have long held a 74.9% stake in the company. All shares are held by Indian promoters.

How did Bharat Dynamics stock perform on the stock market?

Patience bears sweet fruit. Bharat Dynamics investors know this very well.

Until February 2022, the BDL share price was bound to a range. However, the stock price rebounded after February 2022.

Over the past year, BDL’s share has increased by 136%. Year-to-date, the stock price is up 126%. This is only 10% less than the increase for the whole year.

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The company recently landed an order of Rs 29.7 billion from the Ministry of Defence.

The contract is for the supply of ASTRA MK – I Beyond Visual Range air-to-air missiles and associated equipment to the Indian Air Force and Navy.

#5 Schaeffler India

Schaeffler India, formerly known as FAG Bearings India, is one of India’s leading ball bearing and roller bearing manufacturers serving the automotive and multiple industrial segments.

The company caters to all major industry segments including construction, machinery, electrical engineering, fluid technology, etc.

The promoters hold a significant stake in Schaeffler India. They have long held a 74.1% stake in the company. All shares are held by foreign promoters.

So how have Schaeffler India shares performed on the stock market?

The Schaeffler India share price rose on the stock exchanges. Over the past year, the stock price has increased by 122%. Since the beginning of the year, the share price has increased by 69%.

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Earlier this month, Schaeffler India inaugurated its largest consolidation and distribution center in Housr. The warehouse spans 100,000 square feet and is Schaeffler’s largest external warehouse in the Asia-Pacific region.

Takeaway investment

A stock market investor must be very careful. In the stock markets, pros can turn and become cons at any time.

Small cap stocks offer high and fast returns because small cap companies have a high growth rate. But these small-cap stocks also carry high risk.

A high sponsor stake indicates the sponsor’s confidence in the company.

Therefore, an investor should pay attention to the red flags in stock, but he should also not neglect to miss the green flags in the stock.

For more on the green flags and red flags of different stocks, stay tuned to Equitymaster.

Good investment!

Disclaimer: This article is for information only. This is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

#Small #Cap #Multibagger #Stocks #High #Promoter

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