Stock Analysis

What Kind Of Investors Own Most Of TVS Srichakra Limited (NSE:TVSSRICHAK)?

NSEI:TVSSRICHAK
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If you want to know who really controls TVS Srichakra Limited (NSE:TVSSRICHAK), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

TVS Srichakra is not a large company by global standards. It has a market capitalization of ₹15b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about TVS Srichakra.

View our latest analysis for TVS Srichakra

ownership-breakdown
NSEI:TVSSRICHAK Ownership Breakdown January 19th 2021

What Does The Institutional Ownership Tell Us About TVS Srichakra?

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.

As you can see, institutional investors have a fair amount of stake in TVS Srichakra. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 TVS Srichakra's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:TVSSRICHAK Earnings and Revenue Growth January 19th 2021

TVS Srichakra is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is T V Sundram Iyengar & Sons Private Limited with 38% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.4% and 4.4%, of the shares outstanding, respectively. Furthermore, CEO Shobhana Ramachandhran is the owner of 3.7% of the company's shares.

On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of TVS Srichakra

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.

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 a reasonable proportion of TVS Srichakra Limited. It has a market capitalization of just ₹15b, and insiders have ₹1.5b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public holds a 38% stake in TVS Srichakra. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 44%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for TVS Srichakra you should be aware of, and 1 of them is concerning.

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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