There is a lot of buzz going around a company by name Bartronics Limted. Talks are around that it will be a great company in future etc. etc.
I will not here argue the future earning potential, all I want to analyze and present some facts on share holding pattern which I obtained from company website.
The table below displays the Shareholding of the company. It should be remembered that 2 years back the Promoter holding was 58% and it has come down to 33% now and the trend shows that it is decreasing further.
In last 9 months the Promoter's share dropped from 39% to 33%.FII reduced their share from 11% to 6.6%and NRIs reduced it from 12% to 2%.
|Share holding of Bartronics Limited|
|Share holding pattern as on:||31/12/2008||30/09/2008||31/03/2008|
|No. of Shares||%age Holding||No. of Shares||%age Holding||No. of Shares||%age Holding|
Non- Promoter's Holdings
|Banks Fin. Inst. and Insurance||630472||2.18||820472||2.83||2029314||7.65|
|Private Corporate Bodies||3805403||13.13||3974525||13.72||1993327||7.51|
Why the promoters and the smart money reducing their stake in the company if its future is so good. Promoters are the first people to know about the state of the company. FIIs and wealthy NRIs too have a great access to the company information because of the research team they employ.
Why the Big guns are reducing the stake? Big Question.
Now another interesting fact. I saw a report that asked Retail Investor or the general public to buy Bartronics. If you see the retail investor holding in last 9 months it has gone up from 22% to 36%, an increase of 63%.
The small investor is buying something which Smart people are selling!! Is Retail Investor more smart that FIIs, Does small investor has more information about the company than promoters, Does small investor has more risk appetite than a wealthy NRI?This is simple case of offloading to the small investor by fooling them and adds to another everyday frauds that happen in India.
If the promoters are so sure of super growth of this company, why are they doing such a generosity on small investor by distributing its stock.Below is the table for your analysis.
Disclaimer* This article is not intended to malign the company and has been written in good faith to evoke thoughts from the small investors. Readers can read the details of pattern on company website at http://www.bartronicsindia.com/investors/fresults.html and arrive at a conclusion.