The Nifty 50 has corrected nearly 15% from its peak in September 2024, before the recent recovery. The correction in smallcaps has been larger.
As stocks decline and investors grow cautious, some promoters—the founders and largest stakeholders of companies—are actively buying more shares in their own companies.
The insiders are seeing an opportunity where others see risk. Their increased stakes signal confidence in the business’s fundamentals and undervalued potential.
In this article, we analyse five stocks where promoter buying has surged amid the downturn, offering insights into where those closest to the action—and why investors should take notice.
Take a look…
#1 Kiri Industries
First on the list is Kiri Industries, a prominent Indian manufacturer and exporter specialising in dyes, dyes Intermediates, and basic chemicals.
Coming to its financial performance, the company has not delivered growth over the last 3 years while its net profit has fallen at a CAGR of -19%.
The last 3-year return on equity (ROE) has been 8%.
The reasons for such a lacklustre performance are many. The past several years have been challenging for the global chemical industry due to declining demand and volatile raw material prices.
The global textile industry faced a turbulent 2023, marked by a dramatic downturn in investment due to a precipitous decline in demand, particularly in key consumer markets like the US and Europe.
Textile manufacturers faced soaring production costs and tepid consumer spending, leading to a significant buildup of unsold inventory.
Due to this, there was slow demand for dyes and chemicals, impacting the company’s ability to increase sales. Consolidated total revenue remained largely at the previous year’s levels due to muted customer demand.
In addition, the company had to navigate volatile raw material prices and high energy costs, which impacted profitability.
Aside from industry headwinds, the company had to face some internal challenges.
A major factor impacting Kiri’s financial performance has been the significant litigation costs incurred to protect their economic interest in the investment in DyStar Global Holdings. Legal costs remained high in the second quarter of FY25 as well.
Finance costs also scaled up due to increased borrowings in FY24. Certain loans were also raised to cover payments to Singapore lawyers.
Despite such a challenging environment the stock price has managed to hold its own in this correction.
Here’s how the stock price has performed in the past 1 year.
Despite the recent headwinds and weak financial performance, the promoters of Kiri Industries have increased their stake through a preferential issue of warrants, signalling strong confidence in the company’s future.
This decision is largely driven by the anticipated receipt of a substantial sum from the en bloc sale of their stake in DyStar, which is expected to significantly improve the company’s financial position.
The promoters are likely positioning themselves to capitalise on the anticipated influx of funds and the subsequent reinvestment in both core operations and new strategic ventures.
The latest shareholding pattern for Kiri reveals a notable increase in promoters’ stake, rising from 26.7% in the September 2024 quarter to 31.7% in December 2024
Looking ahead, improved profitability is anticipated in FY26 due to reduced legal costs after the DyStar sale.
#2 Integrated Industries
Coming second on the list is Integrated Industries.
Formerly known as Integrated Technologies Limited, it underwent a significant business transformation shifting focus to the manufacturing and trading of agro-food products.
Currently, the company’s main business involves organic & inorganic foods, bakery products, and other processed food items. A key aspect of this new direction was the acquisition of a running biscuit manufacturing plant, Nurture Well Foods, in 2023.
The company now operates through two primary segments: the manufacturing of food products, largely through its subsidiary Nurture Well Foods, and the trading of food products, which includes contract manufacturing, mainly handled by its Dubai-based subsidiary, Nurture Well.
Coming to its financial performance, the company has delivered a top-line growth of 100% year on year (YoY) a net profit growth of more than 100% over the last trailing twelve months.
The company had zero revenue before 2023. The last year’s ROE was 33%.
The business underwent a significant business transformation from technology to agro food, accompanied by an acquisition by new promoters. The company also experienced substantial financial changes in its share capital structure.
This has led to a volatile share price. Ambitious growth expectations and expansion plans, along with ongoing investor scrutiny regarding the new business model and margins, are contributing to the price fluctuations.
Here’s how the stock price has performed in the past 1 year.
The latest shareholding pattern for Integrated Industries shows a notable increase in promoters’ stake, rising from 48.9% in the September 2024 quarter to 53.8% in December 2024.
Looking ahead, the company’s management expects a significant revenue growth, aiming for around Rs 7 billion (bn) in FY25 and Rs 7 bn in FY26.
Furthermore, it anticipates a 70-75% growth in FY27 (on FY26 sales), targeting a consolidated revenue of approximately Rs 12 bn in FY27. This exponential growth explains why promoters are increasing their stake in the company.
The company is also setting up a new biscuit manufacturing facility in Uttar Pradesh with a capacity of around 5,000 tons, expected to commence commercial production by the end of 2026.
The new facility will focus on premium products, which are expected to have better and increased margins compared to the existing product line. The management projects an operating margin of 15-17% in the future.
The capex for the new facility, is estimated at Rs 4-5 bn, is planned to be funded through a mix of equity, debt, and internal accruals.
#3 Asian Granito India
At number three comes Asian Granito India, a leading brand for luxury surfaces and bath ware.
It specialises in a wide range of products including tiles, engineered marble and quartz surfaces, countertops, sanitaryware, bathware, faucets, and construction chemicals.
Coming to its financial performance, the company has delivered a moderate top-line growth of 6% CAGR over the 3-year period. The net profit CAGR has been negative over the same period.
The last 3-year return on equity (ROE) has been -1%.
The reason for this underwhelming performance is that the tile market is characterised by fierce competition, particularly from the unorganised sector, which puts pressure on pricing and profitability.
The finance costs increased in FY24, and depreciation is also increased due to recent capacity expansion undertaken by the company. These factors contributed to reducing the overall profits and turning them to negative.
This has led to the stock touching its 52-week lows.
Here’s how the stock price has performed in the past 1 year.
The latest shareholding pattern for Asian Granito India reveals a notable increase in promoters’ stake, rising from 29% in the September 2024 quarter to 33.5% in December 2024.
Looking ahead, the company has undertaken capacity expansion and is focusing on delivering innovations. They are also expanding their market reach to tier 2, tier 3, and tier 4 markets and have launched a branding campaign with celebrity Ranbir Kapoor.
These growth initiatives may have instilled confidence in the promoters about the company’s future prospects, potentially motivating them to increase their stake.
#4 IOL Chemicals & Pharmaceuticals
Fourth on the list is IOL Chemicals & Pharmaceuticals, a significant global manufacturer of Active Pharmaceutical Ingredients (APIs), Intermediates, and specialty chemicals.
The company’s total installed capacity for Ibuprofen was 12,000 MTPA, and it holds the position of the largest producer of Ibuprofen globally, with approximately 35% market share, being the only company worldwide that is backward integrated for this product.
Coming to its financial performance, the company has delivered a top-line growth of 3% CAGR over the 3-year period and a net profit CAGR of -33% over the same period.
The last 3-year ROE has been 10%.
The company is facing volatility in the prices of its finished goods in both the pharmaceutical and chemical segments. Specifically, the selling prices for Ibuprofen and other APIs have declined.
The management acknowledged that EBITDA margins were affected by a substantial decrease in prices of APIs like Paracetamol (down by over 40% in the last year) and Metformin (down by 15-20%).
While the management anticipates prices have bottomed out, the continued pressure before reaching that bottom is negatively impacting investor sentiment.
Here’s how the stock price has performed in the past 1 year.
The latest shareholding pattern for IOL Chemicals & Pharmaceuticals reveals a notable increase in promoters’ stake, rising from 48.2% in the September 2024 quarter to 52.6% in December 2024.
Looking ahead, the company has been actively diversifying its product portfolio, reducing dependency on Ibuprofen and ethyl acetate.
Revenue from new APIs like Metformin, Clopidogrel, Fenofibrate, Pantoprazole, and Paracetamol is increasing, and the pharma segment is expected to be a major revenue contributor in the future.
Despite the recent pricing pressures and stagnant demand in some segments, the management is optimistic about prices bottoming out and potential recovery in the near future.
They anticipate improved profitability due to increased capacity utilization, export growth, and stabilising prices.
#5 R K Swamy
Fifth on the list is R K Swamy, the first integrated marketing services company to be listed on the main board of the BSE and NSE.
The company operates as a single-window solution for a range of marketing needs, encompassing creative, media, data analytics, and market research services.
Coming to its financial performance, the stock has delivered top-line growth of 24% CAGR over the 3-year period and a net profit CAGR of 138% over the same period.
The last 3-year return on equity (ROE) has been 49%.
However, the trailing twelve-month performance is not so strong. This has led to a continuous decline in the stock price of the company since its IPO.
Here’s how the stock price has performed in the past 1 year.
The latest shareholding pattern for R K Swamyreveals a good increase in promoters’ stake, rising from 66.1% in the September 2024 quarter to 69.6% in December 2024.
The net increase in holding was 3.6%, this insider buying could be a signal of good times that may be ahead and undervaluation of the company stock in the market.
Recently the company added capacity for 600 new associates and additional capacity is being set up for adding 346 callers for computer aided telephonic interviews.
This signals a potential for operating leverage to play out in upcoming quarters.
Conclusion
When promoters buy more shares in their own companies, it’s a strong sign of their belief in the business.
The five stocks discussed here—Kiri Industries, Integrated Industries, Asian Granito India, IOL Chemicals & Pharmaceuticals, and R K Swamy—show insiders putting their money where their mouth is, even during tough markets.
But don’t rely solely on this signal. Insider buying is useful but not enough on its own.
For example, Asian Granito faces stiff competition, and IOL Chemicals deals with unstable drug prices—issues no amount of promoter confidence can magically fix.
Investors should evaluate the company’s fundamentals, corporate governance, and stock valuations as key factors when conducting due diligence before making investment decisions.
Always check industry trends, debt levels, and broader market conditions too.
Think of promoter buying as a helpful clue, not the full story. Combine it with your own research to spot real opportunities and avoid risky bets.
Smart investing means balancing insider optimism with hard facts—a mix that turns hunches into informed decisions.
Happy investing.
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