I never had much to worry about in terms of significant promoter selling until recently.
Recently promoter started significant selling for two of my portfolio comparnies (PF here). Promoters of both Cigniti Tech and MTAR tech are sellng significant quantities in open market.
Personally feel Cigniti is cheaply valued and I see no significant downside unless something unexpected happens and the promoter sale is significant but not too huge. So, I didn’t make any changes to my allocation to this co and the postion size is just under 6%.
Coming to MTAR, the co is richly valued as justified by the growth they’ve delvered over past few years since listing and huge addressable markets with so many deals under discussion phases. However the promoter has been selling huge quantities which make me question about the insider information and possible weak earnings/ reduction in guidance for next few quarters of FY25. So, I’ve reduced my position size slightly as I see equally impressive opportunities elsewhere. I may sell more once I get clarity aftter Q3 concall