Attractive investment ideas: Five stocks where promoters hiked stake

If promoters’ hike stake in their own firms, it shows they are bullish on the prospects of their companies. Checking out promoter holding and thus making an investment decision has long been a handy tool for stock market investors. Zee Business has compiled following five stocks that have not only seen an increase in promoter holding recently, but also are available at attractive valuations:  
 
1) GMR Infra
 
IDBI Capital has a buy rating on the stock with a target price of Rs 32
 
Promoters bought 3.3 crore shares on the company earlier in June
The stock has tanked 12% so far in June
The company has paid back 55% debt in last three years
Tenaga offered the firm $100 crore valuation during stake buying
 
2) Eclerx
 
ICICI Direct has a buy rating on the stock with a target price of Rs 1470
 
Promoters bought 0.25% stake in the company on June 11
Promoters have been hiking stakes for the last three quarters
The stock has fallen 10% in last six months
US business recorded robust growth in comparison to sectoral peers 
No pricing pressure on company in US
FY20 EPS estimated at Rs 84.4, and PE 15.2 times
 
3) Supreme Petro
 
KR Choksey has a buy rating on the stock with a target of Rs 425
 
Promoters hiked stake to 62.31% from Rs 60.84% in Q4
Promoters bought stakes at lower levels post sell-off in stock
The stock has fallen 24% in last six months
The company is debt-free and has enough cash flow
 
4) HCL Tech
 
JP Morgan has a buy rating on the stock with a target of Rs 1020
 
Promoters bought 0.54% stake in the company on June 6
The stock has fallen 16% in last two months
The company posted better results than sectoral peers
The stock is available at attractive valuations vs other big IT firms
The stock's existing EPS at Rs 62.6, PE 14.6x

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5) Century Ply
 
Anand Rathi Securities has a buy rating on the stock with a target price of Rs 330
 
Promoters bought stake in the company for 3 times between June 8-15
The company bought 0.05% stake so far in June
The stock has dipped 17% in last six months
The company's recent product price hike to improve margins
GST reduced competition in the sector; market share improved