For instance, promoters, FPIs and mutual funds have increased stake in CG Power, which is in the process of turnaround with the Murugappa Group entity
stepping in with 800 crore equity infusion and taking a controlling stake. CG Power had a market-leading position in both the domestic extra high voltage transformer and industrial products portfolios but the stock had been under pressure because of corporate governance concerns involving the erstwhile promoter group.
Similarly, all three categories of investors have increased stake in as analysts see bright prospects for the company due to market-share gains, sharper focus on non-plastic furniture, rising industrial activity and deeper penetration in e-commerce.
Promoters and institutional shareholders also raised their stakes in
, which is likely to benefit from favourable dynamics of Indian specialty chemicals sector supported by the China Plus One strategy by global companies. The stock is expected to be re-rated on a strong balance sheet, growth outlook and efficient capital management.
Other companies where promoters, FPIs and MFs increased stake include two broking firms —
and IIFL Securities — which are the beneficiaries of growing activity in the stock market. With retail investors trading in various securities like never before in the past few months, profits at various top stock brokers have more than doubled in FY21 driven by 50-75 per cent growth in revenues despite challenges around stricter upfront margin norms.
Analysts said while promoters and big investors buying stocks are good indicators, investors need to be wary about piggybacking especially in stocks whose valuations are rich. These companies could be steady ones but that need not result in stock returns immediately.
