At the outset companies where promoter shareholding is precariously low and decreasing over time is something I put lower in pecking order of buy list.
Specifically in case of Camlin fine, promoter shareholding (according to screener) has gone down from 22.7 % to 17.55% down by nearly 10% within a period of 3 years.
In this case, what one can do is ask a relevant question to management in concall. (the company does do concall) Or if possible, attend the AGM and ask the question there.
If the explanation is satisfactory and other boxes are ticked, then we can consider investing if the story is appealing enough.
But as a general rule, I personally tend to avoid companies with very low promoter holding, or companies with a lot of pledging by promoters. There are always plenty of other options to look at and choose from.
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