This is very important topic and thread especially the kind of bull market we are in. Unfortunately not discussed on this thread and so not able to get answers to most of questions I have hence reviving the discussion on topic.
Of course, promoter holding is subjective things like many other factors in investing. However, it can give some important clues and can be serve as one of the important factors in analyzing companies.
Request fellow senior and veteran VP members to answer some or all of following questions:
Q1. What could be ideal promoter holdings % should we look in a firm (excluding firm in which promoter holding is restricted due to regulation)?
Q2. How should we read general public holdings? The higher the better or the lower the better?
Q3. How should we read institutional holdings? The higher the better or the lower the better? Should we see it in conjunction with promoter holding?
Q4. What should be duration to check Change in Promoter holding (increase/decrease both)? 1 year? 3 year? Does 5 years makes sense as things could be already factored in? What % of change (decrease) should make us wary about promoters?