AXISCADES Technologies Limited's (NSE:AXISCADES) market cap dropped ₹4.3b last week; Private equity firms bore the brunt

Key Insights

• Significant control over AXISCADES Technologies by private equity firms implies that the general public has more power to influence management and governance-related decisions
• Jupiter Capital Private Limited owns 60% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of AXISCADES Technologies Limited (NSE:AXISCADES) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private equity firms with 60% 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 equity firms as a group endured the highest losses last week after market cap fell by ₹4.3b.

Let's take a closer look to see what the different types of shareholders can tell us about AXISCADES Technologies.

Check out our latest analysis for AXISCADES Technologies

What Does The Institutional Ownership Tell Us About AXISCADES Technologies?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

AXISCADES Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 AXISCADES Technologies' earnings history below. Of course, the future is what really matters.

AXISCADES Technologies is not owned by hedge funds. The company's largest shareholder is Jupiter Capital Private Limited, with ownership of 60%. This implies that they have majority interest control of the future of the company. ICICI Prudential Asset Management Company Limited is the second largest shareholder owning 3.2% of common stock, and Gande Sudhakar holds about 2.3% of the company stock.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of AXISCADES Technologies

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can report that insiders do own shares in AXISCADES Technologies Limited. In their own names, insiders own ₹789m worth of stock in the ₹21b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in AXISCADES Technologies. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 60%, private equity firms could influence the AXISCADES Technologies board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand AXISCADES Technologies better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for AXISCADES Technologies you should be aware of, and 1 of them is significant.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.