The Supreme Industries Limited (SUPREMEIND.NS) Bundle
Who Invests in The Supreme Industries Limited and Why?
Who Invests in Supreme Industries Limited and Why?
The investor profile of Supreme Industries Limited showcases a diverse range of participants, each with unique motivations and strategies. Understanding these key investor types can illuminate the dynamics of market participation in this company.
Key Investor Types
- Retail Investors: These are individual investors who buy and sell shares for their personal accounts. As of the latest data, retail investors constitute approximately 37% of total shareholding in Supreme Industries.
- Institutional Investors: These include pension funds, mutual funds, and insurance companies. They hold around 50% of the company’s shares, signaling strong institutional confidence.
- Hedge Funds: These are pooled investment funds and typically take positions based on sophisticated strategies. Hedge funds currently hold about 10% of Supreme Industries' shares.
Investment Motivations
Investors are primarily attracted to Supreme Industries for various reasons, which can be categorized as follows:
- Growth Prospects: Supreme Industries has demonstrated a robust growth trajectory with a compound annual growth rate (CAGR) of 8.5% over the past five years.
- Dividends: The company has a consistent dividend payout ratio of around 25%, with the most recent dividend yield reported at 1.7%.
- Market Position: Supreme Industries holds a leading market share in plastic manufacturing, estimated at 25% in the organized sector.
Investment Strategies
Investor strategies vary significantly across the board:
- Long-Term Holding: Institutional investors often adopt a buy-and-hold strategy, capitalizing on the company’s steady growth and dividend payments.
- Short-Term Trading: Retail investors frequently engage in short-term trading, responding to market sentiment and quarterly earnings reports.
- Value Investing: Hedge funds may employ value investing strategies, seeking undervalued stocks based on fundamental analysis.
Investment Activity: Statistical Overview
| Investor Type | Percentage of Total Shares | Average Holding Period | Typical Investment Size |
|---|---|---|---|
| Retail Investors | 37% | 6 months | $5,000 - $20,000 |
| Institutional Investors | 50% | 3-5 years | $1 million - $50 million |
| Hedge Funds | 10% | 1-2 years | $500,000 - $10 million |
In summary, the diverse investor landscape of Supreme Industries Limited is shaped by varying motivations and strategies. Each group plays a fundamental role in the company's market dynamics, reflecting broader trends in investment behavior and strategy.
Institutional Ownership and Major Shareholders of The Supreme Industries Limited
Institutional Ownership and Major Shareholders of Supreme Industries Limited
In the investment landscape, understanding institutional ownership can provide significant insights into a company's stability and growth prospects. Supreme Industries Limited, a key player in the plastic and furniture sectors, has attracted considerable interest from institutional investors. Below is a detailed examination of the major institutional investors and their shareholdings in the company.
Top Institutional Investors
| Institution | Type | Shares Held | Percentage Ownership |
|---|---|---|---|
| LIC Mutual Fund | Mutual Fund | 3,500,000 | 7.0% |
| HDFC Asset Management | Mutual Fund | 2,800,000 | 5.6% |
| ICICI Prudential | Mutual Fund | 2,200,000 | 4.4% |
| State Bank of India | Public Sector Bank | 1,500,000 | 3.0% |
| Axis Asset Management | Mutual Fund | 1,200,000 | 2.4% |
Changes in Ownership
Recent reports indicate that several institutional investors have adjusted their stakes in Supreme Industries Limited. For instance, LIC Mutual Fund increased its holdings by 1,000,000 shares, reflecting a 40% increase in their stake over the past quarter. In contrast, State Bank of India reduced its holdings by 500,000 shares, marking a 25% decrease.
Impact of Institutional Investors
Institutional investors play a crucial role in influencing the stock price and strategic direction of Supreme Industries Limited. Their significant shareholdings often lead to enhanced market credibility and can impact investor sentiment positively. For example, changes in institutional ownership can lead to increased stock demand, influencing the share price positively. Additionally, large investors often engage in corporate governance, suggesting strategic changes that could boost long-term value.
In the context of Supreme Industries, several analysts note that the increased stake by LIC Mutual Fund could signal confidence in the company's growth trajectory and solid financial performance, which is also reflected in its recent quarterly results showing a 20% year-over-year increase in revenue. Institutional investors' votes at shareholder meetings can also steer company policies towards more shareholder-friendly practices, enhancing overall company performance.
Key Investors and Their Influence on The Supreme Industries Limited
Key Investors and Their Impact on Supreme Industries Limited
Supreme Industries Limited has attracted attention from a mix of institutional and individual investors. Understanding who these key players are and how they influence the company can provide insights into its market performance.
Notable Investors
Several prominent investors hold significant stakes in Supreme Industries Limited:
- HDFC Mutual Fund - One of the leading mutual funds in India, with a stake of approximately 5.07% in the company as of the latest filings.
- ICICI Prudential Life Insurance - Holds around 4.38% of Supreme Industries, indicating institutional confidence in the company.
- Sundaram Mutual Fund - Known for its diversified portfolio, it owns nearly 3.75% of the company.
- LIC (Life Insurance Corporation of India) - A significant stake of around 6.13% showcases LIC’s long-term investment strategy in the industrial sector.
- Reliance Mutual Fund - Controls about 2.98% of the shareholding.
Investor Influence
These institutions play a crucial role in shaping the strategic direction of Supreme Industries. Their involvement often leads to:
- Corporate Governance Improvements: Institutional investors typically push for better transparency and accountability.
- Strategic Decisions: Large stakeholders can influence decisions regarding expansions, mergers, or capital expenditures.
- Market Perception: The presence of reputable investors generally reinforces market confidence in the stock.
Recent Moves
In recent months, there have been notable activities reflecting the investors' confidence and strategies:
- HDFC Mutual Fund: Increased its stake by 1.25% in Q3 2023, signaling bullish sentiment.
- ICICI Prudential Life Insurance: Recently acquired an additional 0.75% shares, reflecting its long-term investment approach.
- LIC: Reduced its stake slightly from 6.25% to 6.13%, possibly reallocating resources to other sectors.
| Investor Name | Stake (%) | Recent Activity |
|---|---|---|
| HDFC Mutual Fund | 5.07 | Increased stake by 1.25% |
| ICICI Prudential Life Insurance | 4.38 | Acquired additional 0.75% |
| Sundaram Mutual Fund | 3.75 | No recent changes reported |
| LIC | 6.13 | Reduced stake from 6.25% |
| Reliance Mutual Fund | 2.98 | No recent changes reported |
The movements and strategies of these investors significantly impact Supreme Industries Limited, both in terms of stock performance and operational direction. Keeping an eye on such developments can help stakeholders make informed decisions regarding their investments.
Market Impact and Investor Sentiment of The Supreme Industries Limited
Market Impact and Investor Sentiment
The current sentiment among major shareholders of Supreme Industries Limited reflects a predominantly positive outlook. As of Q3 2023, institutional investors hold approximately 35% of the total shares, with notable shareholders including HDFC Asset Management Company and ICICI Prudential Asset Management Company.
Recent market reactions to changes in ownership have been significant, particularly following the announcement of a stock buyback program. The stock price spiked by approximately 8% within a week of the announcement, indicating strong investor confidence. As of October 2023, the stock is trading at around ₹1,050 per share, recovering from its ₹900 lows observed earlier in the year.
Analysts have expressed optimism about the company's growth trajectory, particularly due to its expansion plans in the plastic products segment. As per a recent report by Motilal Oswal, the expected EBITDA for FY 2024 is projected at ₹1,100 crore, with a target price for the stock set at ₹1,200, suggesting an upside of approximately 14%.
| Investor Type | Ownership Percentage | Recent Actions | Sentiment |
|---|---|---|---|
| Institutional Investors | 35% | Increasing positions in Q3 2023 | Positive |
| Retail Investors | 45% | Moderate selling pressure | Neutral |
| Foreign Investors | 20% | Stable, no significant changes | Positive |
Investor sentiment has also been buoyed by favorable macroeconomic conditions and strong quarterly results, with the company reporting a 25% year-over-year growth in revenue for Q2 2023, reaching ₹950 crore. Furthermore, the net profit margin has improved to 12%, reflecting strong operational efficiency.
In summary, analysts indicate that the strategic decisions by key investors and positive financial performance are likely to maintain a bullish sentiment towards Supreme Industries Limited, potentially leading to further price appreciation in the near future.
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