Top high promoter holdings and high ROCE companies

Promoters have a significant impact on a company’s success and growth as they not only invest in the company but also hold executive positions. Hence, it is important for every investor to consider the stakes held by promoters. Promoters are individuals or entities who have founded or initiated a company and have a substantial stake in its ownership.

Generally, companies with higher promoter holdings are considered safer investments compared to those with lower promoter stakes. This is because if promoters themselves believe that the company’s stocks are worth purchasing, it indicates a higher likelihood of the company performing well in the future. Additionally, If the promoter’s stake is increasing every quarter, indicates the promoter’s interest and confidence in the company, even if the promoter’s holding is less the increasing trend can be considered a healthy sign.

ROCE stands for Return on Capital Employed. It is a financial ratio that measures the profitability and efficiency of a company in generating profits from the capital it has employed like Debt and Equity. It is widely used by investors, analysts, and management to evaluate a company’s performance and assess its ability to generate returns.

It is a useful metric for comparing the performance of companies within the same industry or across different industries. It helps investors and analysts understand how effectively a company utilizes its resources to generate profits relative to its peers.

In order to prepare this article, we have selected companies where promoter holdings are more than 50% as well as more than other participants like FIIs, DIIs, and Public Investors. The second criterion used is the companies having a Return on capital employed which is more than 50%. The list is synchronized as per the Promoter holdings.

It is an excellent combination of increased promoter holding coupled with the ability to generate high ROCE. This combination not only gives confidence in the company due to the substantial interest of the promoters in the company but also demonstrates efficient management to generate returns out of capital employed. This indicates a positive sign for investors. Nevertheless, investors should examine additional factors as well. Investors must keep these stocks on their radar.