Could the ownership structure of TV18 Broadcast Limited (NSE:TV18BRDCST) tell us anything useful?

If you want to know who actually controls TV18 Broadcast Limited (NSE: TV18BRDCST), then you’ll need to look at the composition of its share registry. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Companies that have been privatized tend to have low insider ownership.

With a market cap of ₹106 billion, TV18 Broadcast is decently sized, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about TV18 Broadcast.

See our latest analysis for TV18 Broadcast

NSEI: TV18BRDCST Ownership Breakdown April 29, 2022

What does institutional ownership tell us about TV18 broadcasting?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

TV18 Broadcast already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see TV18 Broadcast’s historical revenue and earnings below, but keep in mind there’s always more to the story.

NSEI: TV18BRDCST Earnings and Revenue Growth April 29, 2022

TV18 Broadcast does not belong to hedge funds. Reliance Industries Limited is currently the largest shareholder, with 60% of the outstanding shares. This implies that they have majority control over the future of the company. Norges Bank Investment Management is the second largest shareholder with 3.3% of the ordinary shares, and East Bridge Capital Management Lp owns approximately 1.3% of the company’s shares.

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 a stock’s expected performance. There is some analyst coverage of the stock, but it could still become better known over time.

TV18 Broadcast Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our most recent data indicates that insiders hold shares of TV18 Broadcast Limited. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own around ₹1.2 billion worth of shares (at current prices). Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.

General public property

With a 29% stake, the general public, consisting mainly of individual investors, has some influence over TV18 Broadcast. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Ownership of a public company

It appears to us that public companies hold 60% of TV18 Broadcast. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 1 warning sign with TV18 Broadcast, and understanding them should be part of your investment process.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Comments are closed.