14 Stocks Where Promoters are Signalling Confidence 

If you have been a resident of Delhi, it is quite likely you would have seen a white blue car ferrying passengers in and out of the airport.

That's the distinct fleet of BluSmart, a portal for an all-electric vehicle.

It's been in the news recently for its connection with Gensol Engineering, the stock that nosedived nearly 80% from the peak and has been in news for all the wrong reasons.

Both have a common promoter and are linked businesses.

The rating agencies recently alleged Gensol of falsifying the documents on debt servicing record, thus raising concerns on corporate governance practices and liquidity and debt servicing capability in the business. Since that allegation, the stock is down over 55%.

Do note that this report came in March.

In February 2025, well before the rating agencies sounded the alarm that led to the drastic fall, the promoter had sold over Rs 11 crore worth of stock.

Interestingly, a few months ago, in October 2024, the insiders had bought the stock from the open market at much higher price, although the total amount used to buy was much lower than amount sold.

Looking at these conflicting transactions, a savvy investor could have suspected something fishy well before the rating agencies did.

In another case, over US$ 1 bn worth of shares were sold by insiders in the open market before it became a public debacle.

While insider selling is not always a red flag, tracking insider trades can give decent insights into the underlying potential of the business.

There is nothing illegal about insider trading as long as it follows the rules laid out by regulators.

The insider information is public and can help you get a good lead over other investors in shortlisting potential winners.

Imagine you and your friend compete in a new video game. The game offers you multiple routes, a few of which could lead you to the jackpot. Now, there are experienced players too playing the same game who are better informed about what lies ahead, who are also trying to win.

If you could find a way to follow their steps around, the chances of you getting a lead over your friend are higher.

Similarly, tracking insider activity, though it may not produce a guaranteed result, can help you gain some edge over other investors who are trying to strike rich in stocks.

So promoters and other insiders are like experienced players who have navigated similar routes before, having been in the business since inception in most cases.

They know the rules of the game and the possible influences of the external factors better than an outside investor, and even so called 'smart investors'.

By tracking insider buying , you build a watchlist of stocks where insiders are showing confidence in the business prospect by putting at stake their personal money. And it may even help you sidestep a few landmines in case of suspicious insider sales.

Let's now take a look at the big insider buying transactions from the open market in the month of March where stocks have witnessed insider buying of Rs 1 crore or more.

You see the insider buying was quite healthy in this month amid correction the markets. It is likely that some stocks have been battered more than warranted. And if you are a long term investor, tracking insider buying could give you a good headstart by helping you shortlist stocks that promoters cant get enough of.

For this list, I have excluded companies with high Debt to equity of above 1x, companies with zero institutional holdings and the ones with marketcap below Rs 5 bn, where promoter pledging is above 10 pc, or companies with return ratios below 10 pc.

Reason is we want to do a basic screening for fundamentals and liquidity.

Further, only open market purchases have been considered. Also, cases where conflicting trades were happening, that is, cases where buying and selling happening around same time or price have been excluded.

So these are the names that have qualified these filters, and where the current stock price is either at a discount or not more than 10% than the average insider buying price.

Do note that this is not a recommendation. Following promoter or insider activity does not guarantee success and further due diligence is needed. Nonetheless, it's a good way to shortlist stocks in a volatile market.

If you found this video useful, do press the like button.

Let me know your feedback in the comments section.

And make sure to press the subscribe button for alerts for such videos.

Thank you for watching. Goodbye.