Is the shareholding of EID-Parry (India) Limited (NSE: EIDPARRY) biased in favor of insiders?
A look at the shareholders of EID-Parry (India) Limited (NSE: EIDPARRY) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. I like to see at least a little insider ownership. As Charlie Munger said, âShow me the incentive and I’ll show you the result.
EID-Parry (India) has a market cap of 89 billion yen, so we would expect some institutional investors to take notice of the action. In the graphic below, we can see that the institutions are visible on the share register. Let’s dig deeper into each type of owner, to learn more about EID-Parry (India).
See our latest analysis for EID-Parry (India)
What does institutional ownership tell us about the EID-Parry (India)?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors have a large stake in EID-Parry (India). This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see the historical income and revenue for EID-Parry (India) below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have a significant investment in EID-Parry (India). Looking at our data, we can see that the largest shareholder is Murugappa Group Ltd. with 41% of the shares outstanding. For context, the second largest shareholder owns around 3.5% of the outstanding shares, followed by 2.1% ownership by the third largest shareholder.
Our research also shed light on the fact that around 50% of the company is controlled by the top 5 shareholders, which suggests that these owners exercise significant influence over the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. The title is covered by analysts, but it could become even more famous over time.
EID Insider Ownership – Parry (India)
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders have a significant stake in EID-Parry (India) Limited. It has a market cap of just 89 billion yen and insiders have 12 billion yen of shares in their own name. It is quite important. Most would say it shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have bought or sold.
General public property
The general public, including retail investors, own 32% of the company’s capital and therefore cannot be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It seems that private companies own 44% of the shares of EID-Parry (India). It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really gain insight, we have to take other information into account as well. For example, we discovered 3 warning signs for EID- Parry (India) which you should know before investing here.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.