Private companies among Talbros Automotive Components Limited's (NSE:TALBROAUTO) largest shareholders, saw gain in holdings value after stock jumped 10% last week

Key Insights

• Significant control over Talbros Automotive Components by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 3 shareholders own 50% of the company
• Insider ownership in Talbros Automotive Components is 19%

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A look at the shareholders of Talbros Automotive Components Limited (NSE:TALBROAUTO) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit ₹16b market cap following a 10% gain in the stock.

Let's delve deeper into each type of owner of Talbros Automotive Components, beginning with the chart below.

Check out our latest analysis for Talbros Automotive Components

What Does The Institutional Ownership Tell Us About Talbros Automotive Components?

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.

Institutions have a very small stake in Talbros Automotive Components. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Hedge funds don't have many shares in Talbros Automotive Components. The company's largest shareholder is Talbros International Ltd., with ownership of 43%. Naresh Talwar is the second largest shareholder owning 4.6% of common stock, and Anuj Talwar holds about 3.0% of the company stock. Anuj Talwar, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Umesh Talwar, the CEO has 1.5% of the shares allocated to their name.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Talbros Automotive Components

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.

It seems insiders own a significant proportion of Talbros Automotive Components Limited. Insiders own ₹3.1b worth of shares in the ₹16b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Talbros Automotive Components. 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.

Private Company Ownership

We can see that Private Companies own 43%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Talbros Automotive Components you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.