Latest news with #HarshalDasani
Mint
28-05-2025
- Business
- Mint
ITC share price falls 4% on likely ₹14,000 crore stake sale by BAT via block deals
ITC block deal: Shares of ITC Limited declined 4% in early trade on Wednesday, May 28, following multiple block deals in the counter, wherein British American Tobacco (BAT) likely offloaded a 2.6% stake in the diversified conglomerate, worth nearly ₹ 14,000 crore. According to media reports, 33.25 crore shares, representing a 2.57% stake in ITC, changed hands via six block deals at ₹ 417 apiece, amounting to approximately ₹ 13,900 crore. However, the official details of the parties involved in the block deal will likely be known post-market trading hours today. This block deal size was higher than the 2.3% stake BAT said it intended to sell. Despite the stake sale, BAT will remain ITC's largest investor post-disposal, with a 23.1% stake. A Reuters report on Tuesday said BAT is selling up to 290 million shares in the deal, at a floor price of ₹ 400, a discount of 7.8% to ITC stock's closing price. The London-based cigarette maker had offloaded 436.9 million shares, or roughly 3.5% of ITC's outstanding shares, for about $2 billion last year, in what was India's third-largest block deal ever, as per Reuters. The company, earlier this month, along with its Q4 results, had announced a dividend, for which it had fixed May 28 as the record date. The record date helps determine the entitlement of the members for a corporate action undertaken by the company. To be eligible for the dividend, ITC shareholders should have purchased the stock a day prior, as the Indian stock market follows a T+1 settlement system. According to Harshal Dasani, research analyst at INVasset PMS, the ITC block deal has opened a long-term accumulation window. ITC stock price chart 'ITC witnessed a ₹ 13,863 crore block deal as BAT sold a 2.57% stake at ₹ 417, triggering a temporary price dip. The stock closed at ₹ 402.20, slipping below its 20/50/100/200 EMA cluster around ₹ 426. Despite the short-term volatility, volumes indicate strong institutional participation,' Dasani said. He added that the RSI near 46 signals a neutral zone—not weakness. With strong fundamentals and attractive valuations, this correction offers a strategic accumulation opportunity for long-term investors, with ₹ 390– ₹ 400 may act as a solid base, Dasani said. ITC share price dipped as much as 4.3% to the day's low of ₹ 415.10 on the BSE today. Around 10.30 am, ITC stock was trading 3.10% down at ₹ 420.45 per share.
Mint
15-05-2025
- Business
- Mint
Shareholdings moves in Q4: Pledging peril hits smallcaps, escalating investor worries
Imagine a tightrope walker in a storm—that's akin to promoters of several BSE-listed companies in the March 2025 quarter. Buffeted by volatile markets, they sharply rejigged their pledged shareholdings, a tell-tale sign of rising financial pressure. A deep dive by Mint into 3,716 BSE entities reveals this dramatic churn, particularly highlighting the growing strain on smaller players as they navigate the unpredictable economic winds. While the number of companies where promoter pledging exceeded 90% dipped slightly to 34 in Q4FY25 from 35 in the December quarter and 40 a year ago, the trend still highlights persistent stress. "Promoter pledging signals corporate finance stress and governance risk. A high pledge indicates risks the company might face. Studies show companies with high promoter pledges see higher market volatility. Promoters' shares, held as collateral, can be sold to recoup losses. In a price crash, lenders may panic sell, triggering a market spree," said Vivek Sharma, head of investment at Estee Advisors. 'Moreover, pledging is costly, with lenders imposing high interest rates and strict loan-to-value ratios. This pressures future earnings, requiring growth above capital costs to create value. While not always leading to poor performance, high pledging shows a strong correlation with it," he added. Flashpoints of concern The steepest rise in promoter pledging is concentrated in small-cap companies, the Mint analysis shows, whose falling stock prices point to mounting investor anxiety about their financial foundations. Topping the list is IL&FS Investment Managers, a financial services firm, where promoter pledging spiked from zero to 100% in just one quarter. The market reacted sharply, with the stock falling 18.93% during the same period. Real estate player Marathon Nextgen Realty followed closely, as its promoters increased pledged shares from nil to 91.46%, resulting in a 12.02% drop in its stock price. Auto component manufacturer NRB Bearings also saw a significant rise in promoter pledging, reaching 91.35%, while its share price declined 27.97%. Even companies that had relatively lower promoter pledging levels to begin with weren't spared after steep increases. In the case of textile exporter Gokaldas Exports, pledging rose dramatically from 22.37% to 96.28%, triggering the steepest fall among the group, with the stock tumbling 28.84%. Meanwhile, chemicals and flooring products manufacturer Royal Cushion Vinyl Products reported an increase in promoter pledging from 3.86% to 76.5%, alongside a 3.28% dip in its share price. Harshal Dasani, business head at INVasset PMS, noted, 'The March 2025 quarter has reinforced a shift in investor psychology—any form of promoter pledging, whether rising or falling, is now met with suspicion. Markets are punishing even firms that reduced pledged shares, signalling that investors are reacting not just to the direction of pledging, but to its very existence." This heightened scrutiny stems from tighter liquidity, macroeconomic volatility, and governance scandals in the mid- and small-cap space. 'Even strategic pledging for business expansion is now under the scanner," Dasani added. 'There is also a risk that the promoter might lose control of management in distressed market conditions. Since promoters are often key personnel in the operations of the organization, a high pledge, especially above 50%, raises concerns among investors," said Sharma. Also read Shareholdings moves in Q4: Indian Inc's founders hike stakes in select small-cap firms Good news falls flat Supporting Dasani's claims, even drastic cuts in promoter pledging failed to prevent significant stock price declines. For instance, Inditrade Capital's complete reduction from 96.4% to zero was followed by a 51% drop in the March quarter. Future Market Networks experienced a similar fate, with a 40.6% price erosion despite zero pledging, all while the market experienced a shaky uptrend in that quarter. Pakka, which operates in paper and packaging, reduced promoter pledging from 85% to 9%, but saw a 46.4% slump in its stock. Aster DM Healthcare and Bedmutha Industries also faced stock declines despite lowering their pledges. 'Empirical studies have found that while high promoter pledging does not always lead to poor performance, there is a high correlation between the two," Sharma highlighted. This is the concluding part of a series of data stories on the latest shareholding pattern. Read previous parts of our shareholding series here.
Mint
12-05-2025
- Business
- Mint
Shareholding moves in Q4: Million new investors flocked to these firms
The growing clout of retail investors is hard to ignore, and so are their bets. In the March quarter, individual investors–those holding shares worth up to ₹2 lakh– doubled down on financial services, auto and depository firms. These stocks faced steep corrections—some falling as much as 30%—yet they collectively attracted over a million new individual shareholders, on a sequential basis, defying the broader market sentiment. The ones that saw this investor surge include Central Depository Services (India) Ltd (CDSL), Jio Financial Services, Tata Motors, and Eternal, each witnessing a steady rise in retail participation despite their declining share prices. Also read Shareholdings moves in Q4: Mutual funds load up on 5 mid- & small-cap laggards Retail rush CDSL, a key player in India's demat ecosystem, added nearly 350,000 new retail investors during the quarter despite its stock plunging 30% sequentially in January-March. With this, the retail shareholding in the company jumped from 40.1% in December to 49.3% in March. The company's essential role in servicing over 152.89 million demat accounts—with 37.3 million new accounts opened in FY25—kept investor interest alive. However, weak IPO activity and declining transaction revenues dragged earnings, prompting brokerages like JM Financial to cut price targets but maintain a "hold" rating. Jio Financial, the Reliance Industries spin-off, followed closely, attracting 270,000 new shareholders even as its stock fell 23% sequentially. Individual investors' stakes in this company have risen around 180 basis points, quarter-on-quarter. The company's rapid expansion in retail lending, insurance, and payments—supported by AI-driven solutions—boosted assets under management (AUM) to ₹100.5 billion. Yet, KRChoksey retained a cautious "hold" stance, citing near-term earnings uncertainty despite long-term potential. Maintaining momentum Both Tata Motors and Eternal added around 260,000 individual investors each during the quarter. Tata Motors, in particular, sustained retail interest after a massive 730,000 investor additions in the December quarter, despite a 9% price drop in Q4. Analysts at Elara Capital cited strong JLR margins but flagged a cautious outlook on commercial vehicles. Meanwhile, Eternal saw a 27% price decline, but maintained investor interest. JP Morgan flagged short-term cost pressures and competitive intensity but remained 'overweight" on the stock, citing long-term growth in quick-commerce and food delivery. 'This surge in retail participation contrasts with the institutional playbook. While foreign portfolio investors (FPIs) focused on large-cap names amid geopolitical uncertainty and macro risks, retail investors appeared to chase value in beaten-down counters," Harshal Dasani, portfolio manager at INVasset PMS, said. 'Retail is showing signs of maturing, taking contrarian positions. But some of this seems anchored to past narratives rather than current earnings visibility," he added. Also read Shareholdings moves in Q4: FPIs make bold bets on small-caps and a troubled bank Among other gainers, Kalyan Jewellers added 210,000 investors despite a 39% fall in its stock. IndusInd Bank attracted 130,000 new shareholders even though it has been embroiled in regulatory and financial turbulence. Ola Electric and SBI also drew one lakh new investors each. Exits in outperformers While some companies gained investor traction, others saw significant pullback in retail ownership. Power utility NTPC recorded the sharpest drop, with 216,000 individual investors exiting even as the stock gained over 7% in the quarter. Notably, this followed after a strong December quarter when the firm had added 7.8 lakh new investors. Vishal Mega Mart saw their investor base falling by 2 lakhs, while its stock slipped 1.5%. In Tata Steel, 130,000 investors exited while the stock rose 11% during the quarter. Ajax Engineering lost 1.25 lakh retail investors during the quarter while its stock price fell 5.6% during this period. Other notable exits in terms of drop in their investor count include HDFC Bank (-93,103 investors), SBI Cards (-87,725), Bajaj Finance (-85,853), and NHPC (-73,067). These stocks have posted gains ranging from 2% to 33% during the quarter. This is the ninth part of a series of data stories on the latest shareholding pattern. Read previous parts of our shareholding serieshere. We will resume our earnings data series next week.
Mint
29-04-2025
- Business
- Mint
Shareholding moves in Q4: Retail investors jump ship in choppy waters
The March quarter was a rollercoaster for Indian equities: a historic February low gave way to a tentative March rebound. Against a backdrop of global uncertainty, however, investor actions showed a divided house. Retail investors slashed their holdings as on 31 March, marking the steepest pullback among all investor categories, a Mint analysis of 3,315 BSE-listed firms reveals. The shift reflects a growing caution after outsized gains in 2024, with profit-booking and repositioning driven by rising global and domestic headwinds. During the September and December quarters, retail investors —individuals owning shares worth up to ₹ 2 lakh—pruned their holdings in 49.6% of the firms in which they held stakes (1,645 companies) while increasing their holdings in nearly 43%. This marked the most pronounced shift among investor classes. In contrast, foreign portfolio investors ( FPIs ) displayed a balanced approach, raising and lowering their stakes by 38.6%. Mutual funds also showed remarkable steadiness, increasing their stakes in 446 companies while keeping their stakes in 76.1% of the companies unchanged. Also read | Q4 earnings watch: An unwelcome trend of profit reversals for India Inc 'Retail investors sharply cut exposure in Q4 FY25, reacting to heightened market volatility, macro concerns, and a broad sell-off," said Harshal Dasani, business head at INVasset PMS, a portfolio management service provider. 'Retail investors, more sensitive to short-term swings, reacted to falling portfolios, a slowdown in consumption, liquidity crunch, and persistent FPI selling." Consequently, the overall ownership pattern reflected a combination of anxiety, leading to reduced exposure and abstinence as many investors chose to remain on the sidelines. Retail investors, who had steadily increased their holdings from 13.1% in Q4 FY24 to 14.3% by Q3 FY25, halted their buying spree in the March quarter, with ownership plateauing for the first time in the year. In contrast, FPIs nudged up their stakes from 12.1% to 12.3%, signaling a cautious comeback. Domestic mutual funds held steady at 6.1%, reflecting their disciplined and long-term investment approach. The retreat by retail investors was most pronounced in segments like cement, chemicals, and apparel. Individual investors sequentially pruned stakes in 23 out of 33 cement companies. In the readymade garment or apparel space, around 67% of the firms saw a drop in retail ownership on a quarter-on-quarter basis, while over 60% of the firms in the chemical sector saw individuals paring their stakes during the March quarter. Information technology and IT-enabled services firms, facing a looming US slowdown, saw significant retail (46%) and FPI (44%) stake reductions, while mutual funds showed resilience with only 10% trimming exposure and 73.4% holding steady. 'Muted results and weak outlooks weighed on tech," said Dasani. Also read | Big Four of Indian IT lose market share; HCL Tech's outlook offers little relief In the consumption sector, retail investors reduced holdings in 48% of the 497 companies analysed. FPIs exited 41% of the firms, while mutual funds trimmed stakes in just 12%, keeping their positions unchanged in 69%. 'Retail sentiment soured due to weak demand trends," Dasani added. The banking and financial space saw retail stake cuts in 47% of the 468 companies tracked. FPI reductions were limited to 29% of the firms, while mutual funds pared their holdings in only 9.2%, leaving 80.3% of the positions unchanged. 'Liquidity tightening concerns drove retail outflows," Dasani noted. This is the first part of a series of data stories on the latest shareholding pattern.
