Promoter holding is one of the important parameters that investors check while investing in a company that is not professionally managed or is managed by families. A high or increasing promoter holding indicates that its promoters think that it is worth buying the shares of their company and is a positive signal. 

Here are a few small-cap multibagger stocks that have a high promoter holding: 

Kewal Kiran Clothing 

The company is engaged in the manufacturing, marketing and retailing of branded readymade garments and finished accessories. It has a presence across India and in select international markets. 

In the past year, the company’s share price increased from ₹ 240.15 to ₹ 492.45, giving multibagger returns of 105.06%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.05 lakhs today! 

Kewal Kiran Clothing is a small-cap company with a market capitalization of ₹ 3,082 crores. Its promoters hold a 74.26% stake in it. The company has an ideal return on equity of 23.22% and an ideal debt-to-equity ratio of 0.12. Its shares were trading at a price-to-earnings ratio of 25.90, which is slightly higher than the industry P/E of 22.28, indicating that the stock might be overvalued as compared to its peers. Moreover, it has a dividend yield of 1.75%. 

Hariom Pipe Industries 

The Hyderabad-headquartered company is an integrated steel manufacturer with a stronghold in the South Indian market. It has a diverse product portfolio consisting of mild steel (MS) billets, pipes and tubes, hot rolled (HR) coils, and scaffolding systems that cater to a variety of industrial applications. 

In the past year, the company’s share price increased from ₹ 203.00 to ₹ 583.90, giving multibagger returns of 187.64%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.87 lakhs today! 

Hariom Pipe Industries is a small-cap company with a market capitalization of ₹ 1,627 crores. Its promoters hold a 60.92% stake in it. The company has a high return on equity of 37.20% and an ideal debt-to-equity ratio of 0.34. Its shares were trading at a price-to-earnings ratio of 33.34, which is substantially higher than the industry P/E of 12.02, indicating that the stock might be overvalued as compared to its peers. 

Apar Industries

The company is a manufacturer and supplier of conductors, cables, specialty oils, polymers and lubricants. Its segments include conductors, transformers, specialty oils and telecom cables. It is a market leader in India with a global presence. 

In the past year, the company’s share price increased from ₹610.15 to ₹ 2,718.65, giving multibagger returns of 345.57%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 4.45 lakhs today! 

Apar Industries is a small-cap company with a market capitalization of ₹ 10,387 crores. Its promoters hold a 60.64% stake in it. The company has a high return on equity of 32.28% and an ideal debt-to-equity ratio of 0.17. Its shares were trading at a price-to-earnings ratio of 16.29, which is slightly higher than the industry P/E of 14.84, indicating that the stock might be overvalued as compared to its peers. 

Written by Simran Bafna

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 3 Multibagger small cap stocks with High Promoter holding of up to 74%; Do you own any? appeared first on Trade Brains.