What Kind Of Investors Own Most Of Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH)?

A look at the shareholders of Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Procter & Gamble Hygiene and Health Care is a pretty big company. It has a market capitalization of ₹330b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Procter & Gamble Hygiene and Health Care.

Check out our latest analysis for Procter & Gamble Hygiene and Health Care

What Does The Institutional Ownership Tell Us About Procter & Gamble Hygiene and Health Care?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Procter & Gamble Hygiene and Health Care already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Procter & Gamble Hygiene and Health Care's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Procter & Gamble Hygiene and Health Care. The company's largest shareholder is The Procter & Gamble Company, with ownership of 69%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 3.9% and 3.2% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and SBI Funds Management Private Limited are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Procter & Gamble Hygiene and Health Care

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Procter & Gamble Hygiene and Health Care Limited. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Keep in mind that it's a big company, and the insiders own ₹170m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, with a 16% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 69% of Procter & Gamble Hygiene and Health Care. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Procter & Gamble Hygiene and Health Care better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Procter & Gamble Hygiene and Health Care , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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