New Delhi. When India's major investors, often called 'Warren Buffetts of India', exit a stock, it can be a signal for other investors. These investors are known for long-term investment strategies. Therefore, small and medium investors keep an eye on them. These big investors reduced their stake in five major companies in the September quarter. Which can potentially indicate a fundamental change in the company or a changing industry landscape.

Let us see which are the 5 stocks in which these people reduced their stake.

Deepak Spinners
Deepak Spinners has reported a weak ROCE performance of 1.93%, while the industry average is around 8.64%. The decline in the company's profit margins and the exit of institutional investors indicate that the company is facing challenging times. Meanwhile, promoter holdings have remained stable, which may provide some relief to long-term investors. Dolly Khanna has reduced her stake in the company by 1.4 per cent.

Genesys International
Genesys International, which provides geospatial services, has a current ROCE of only 8.28%. Its performance is much weaker than its flagship company Tata Elxsi, which has a ROCE of 42.74%. The promoter holdings of this company have declined, which could potentially be a cause of concern for investors. Ashish Kacholia and Hitesh Doshi have reduced their stake in this company by more than 1 per cent.

Repro India
Printing and publishing service provider Repro India's profit has declined. Although the company's debt has reduced, its share price and institutional holdings have also declined, which makes the company's current situation challenging. Ashish Kacholia has reduced his 2.41 percent stake in this company.

IndoStar Capital Finance
IndoStar Capital Finance has a ROCE of 8.35%, which is lower than the industry average of 10.35%. However, the company has changed its business approach to focus on commercial vehicle and affordable housing financing segments, which could be beneficial in the long term. Madhuri Madhusudan Kela has sold about 2.5% stake in this stock.

Garware Hi-Tech Films
Garware Hi-Tech Films has a relatively better performance, with a ROCE of 13.96%, slightly higher than the industry average of 13.59%. The company has complete backward integration capability and has grown its EBITDA and net profit significantly, which makes it stand out from other companies in this list. Ashish Kacholia has reduced this stock by about 2.90 per cent in the September quarter.
Based on the current performance of these stocks, there may be some red flags for investors. Weak financial indicators, such as low ROCE, falling profit margins, and declining promoter holdings, could be red flags for some companies. However, it is not necessary to know the reason for exit in all cases.