Public companies account for 59% of Motherson Sumi Wiring India Limited's (NSE:MSUMI) ownership, while institutions account for 25%

Key Insights

• Significant control over Motherson Sumi Wiring India by public companies implies that the general public has more power to influence management and governance-related decisions
• 59% of the business is held by the top 2 shareholders
• 25% of Motherson Sumi Wiring India is held by Institutions

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A look at the shareholders of Motherson Sumi Wiring India Limited (NSE:MSUMI) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 25% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about Motherson Sumi Wiring India.

See our latest analysis for Motherson Sumi Wiring India

What Does The Institutional Ownership Tell Us About Motherson Sumi Wiring India?

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.

Motherson Sumi Wiring India already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Motherson Sumi Wiring India's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Motherson Sumi Wiring India. Samvardhana Motherson International Limited is currently the company's largest shareholder with 33% of shares outstanding. Sumitomo Electric Industries, Ltd. is the second largest shareholder owning 25% of common stock, and ICICI Prudential Asset Management Company Limited holds about 5.0% of the company stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Motherson Sumi Wiring India

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Motherson Sumi Wiring India Limited. This is a big company, so it is good to see this level of alignment. Insiders own ₹7.2b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't 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

We can see that public companies hold 59% of the Motherson Sumi Wiring India shares on issue. 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 Motherson Sumi Wiring India better, we need to consider many other factors. For instance, we've identified 1 warning sign for Motherson Sumi Wiring India that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.