What does the ownership structure of Krsnaa Diagnostics Limited (NSE:KRSNAA) look like?

A look at the shareholders of Krsnaa Diagnostics Limited (NSE:KRSNAA) can tell us which group is the most powerful. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. 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 ₹17 billion, Krsnaa Diagnostics is a small cap stock, so it may not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about Krsnaa Diagnostics.

Check out our latest analysis for Krsnaa Diagnostics

NSEI: KRSNAA Ownership Breakdown April 6, 2022

What does institutional ownership tell us about Krsnaa Diagnostics?

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.

We can see that Krsnaa Diagnostics has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. 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 Krsnaa Diagnostics’ revenue and historical earnings below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
NSEI: KRSNAA Earnings and Revenue Growth April 6, 2022

Krsnaa Diagnostics is not owned by hedge funds. The company’s largest shareholder is Rajendra Mutha, with a 26% stake. Phi Capital Management LLP is the second largest shareholder holding 16% of the common shares, and Invesco Ltd. owns approximately 4.0% of the company’s shares. Additionally, we found that Pallavi Bhatevara, the CEO, owns 1.0% of the shares allocated in his name.

Our research also shed light on the fact that approximately 53% of the company is controlled by the top 5 shareholders, suggesting that these owners wield significant influence over the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. 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 Krsnaa Diagnostics

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Krsnaa Diagnostics Limited. Insiders hold ₹5.8 billion worth of shares in the ₹17 billion company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.

General public property

The general public, including retail investors, owns 12% of the company’s capital and therefore cannot be easily ignored. 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 equity ownership

Private equity firms hold a 16% stake in Krsnaa Diagnostics. This suggests that they can influence key policy decisions. Sometimes we see private capital sticking around for the long haul, but generally they have a shorter investment horizon and, as the name suggests, don’t invest heavily in public companies. After a while, they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that private companies hold 3.6% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Consider the risks, for example. Every business has them, and we’ve spotted 2 warning signs for Krsnaa Diagnostics you should know.

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.