What does the ownership structure of Alkyl Amines Chemicals Limited (NSE: ALKYLAMINE) look like?
Every investor in Alkyl Amines Chemicals Limited (NSE: ALKYLAMINE) should know the most powerful shareholder groups. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.
With a market capitalization of ₹152 billion, Alkyl Amines Chemicals is a decent size, so it is probably on the radar of institutional investors. Looking at our data on ownership groups (below), it seems that institutions are not really present in the share register. Let’s dig deeper into each type of owner, to learn more about Alkyl Amines Chemicals.
See our latest analysis for Alkyl Amines Chemicals
What does institutional ownership tell us about Alkyl Amines chemicals?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
Institutions has a very small stake in Alkyl Amines Chemicals. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company strengthens from here, we could see a situation where more institutions are eager to buy. It is not uncommon to see a sharp rise in the stock price if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings trajectory below, but keep in mind that it’s the future that matters most.
We note that hedge funds have no significant investment in Alkyl Amines Chemicals. With a 58% stake, CEO Yogesh Kothari is the largest shareholder. With such a large stake, we infer that they have significant control over the future of the company. It is generally considered a good sign when insiders hold a significant number of shares in the company, and in this case, we are happy to see a company insider with such skin in the game. With respectively 3.8% and 3.7% of the outstanding shares, Niyoko Trading & Consultancy Pvt and Purjeeko Trading & Consultancy Llp are the second and third shareholders.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.
Insider Property of Alkylamine Chemicals
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
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 own the majority of Alkyl Amines Chemicals Limited. This means they can collectively make decisions for the business. This means insiders have a very significant ₹96 billion stake in this ₹152 billion venture. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if they have sold their stake.
General public property
The general public, who are usually individual investors, hold a 25% stake in Alkyl Amines Chemicals. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private Company Ownership
It appears that private companies own 9.1% of the shares of Alkyl Amines Chemicals. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 1 warning sign for Alkyl Amines Chemicals you should be aware.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
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.
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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.