Low promoter holding shouldn’t be as much concern as promoter selling the stakes. Amara promoter family hasn’t reduced their stake over the years and has maintained it at 28% which again is not small by any means.
Some of the blue chip names like Infy, L&T, Axis, Mahindra & Mahindra also have low promoter holding (under 20%) which doesn’t mean their management is inept or questionable. And there are other quality names (e.g. ICICI bank) where there really are no promoters.
It’s testimony to promoters’ vision and execution excellence that Amara was able to break Exide’s monopoly and gain significant market share. Quality of their product is world class (from my own experience), it’s a zero debt company and promoters are very smart in allocating capital.
Disc- Invested at 600 levels.
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