Promoter holding indicates the percentage of shares held by the promoters of a company. Promoters are individuals or groups who own a major and sometimes a controlling stake in a company. They may also hold senior executive positions in the company and have a significant influence on it. Professionally managed businesses where promoters maintain zero stakes are known as companies with zero promoter holdings.
Companies with zero promoter holdings in India
Many large non-promoter companies in India are doing notably well in the stock market today. Below is a brief snapshot of these companies, along with their shareholding pattern and a few performance indicators.
- ITC
ITC is a large-cap company in the tobacco and FMCG sector, incorporated in the year 1910. It has a market capitalisation of Rs. 2,85,400.36 Cr as of 8th October. The gross sales saw a Year-on-Year (YoY) growth of 3.43% in 2021, while the profit after was negative 14.08%.
| EPS | Rs. 11.09 |
| P/E Ratio | 20.90 |
| ROCE% | 27.99% |
| Dividend Yield | 4.64 |
FII here stands for Foreign Institutional Investor, while DII stands for Domestic Institutional Investor.
- ICICI Bank
ICICI Bank, a well-known private lender, is one of the top non-promoter companies In India. The bank was incorporated in 1994. Its market capitalisation is Rs. 4,87,431.58 Cr as of 8th October 2021. The bank saw YoY growth of 7.71% in total income and 81.41% in profit after tax in 2021.
| EPS | Rs. 26.26 |
| P/E Ratio | 26.77 |
| ROCE% | 10.44% |
| Dividend Yield | .28 |
- L&T
Larsen & Toubro Ltd., incorporated in 1946, is one of the largest engineering companies in India. The market capitalisation stands at Rs. 2,42,626.23 Cr as of 8th October 2021. The YoY gross sales were a negative 6.51%, but profit after tax grew by 19.27% for the year ending March 2021.
| EPS | Rs. 22.46 |
| P/E Ratio | 76.91 |
| ROCE% | 22.67% |
| Dividend Yield | 2.08 |
- Federal Bank
The Federal Bank, incorporated in 1931, is a midcap stock with a market capitalisation of Rs. 17,989.32 crore. YoY total income rose by 5.17% and profit after tax went up by 6.08% for the year ending March 2021.
| EPS | Rs. 7.41 |
| P/E Ratio | 11.56 |
| ROCE% | 10.21% |
| Dividend Yield | 0.81 |
5. HDFC
Housing Development Finance Corporation Ltd, incorporated in 1977, has a market capitalisation of Rs. 4,91,842.12 Cr as of 8th October 2021. HDFC provides finance for the purchase, construction, development, and repair of houses, apartments, and commercial property in India. Its YoY profit after tax was negative 20.57% for the year ending March 2021.
| EPS | Rs. 66.23 |
| P/E Ratio | 41.07 |
| ROCE% | 8.24 |
| Dividend Yield | 0.85 |
Should you focus on promoter holding when choosing stocks?
When you pick stocks to invest in, there are various factors to consider. Many high as well as low promoter holding companies in India perform well. It is advisable to focus on the company’s financial fundamentals when you invest in it and not only on the promoter’s share in it.
If promoters decide to exit a business or reduce their holding in it, it is a good idea to find the reason for it. Generally, if a company is expected to do well in the future, promoters are not likely to forgo their share in its growth.
Conclusion
Investing in the right stocks can help you in wealth creation and goal-based savings. If you are confused about whether to invest in companies with zero promoter holdings or where promoters hold high stakes, you can consult a financial advisor. An expert can help you pick the best stocks to invest in the market today as per your needs and goals.