The recent pullback must have dismayed Capacit'e Infraprojects Limited (NSE:CAPACITE) insiders who own 34% of the company

Key Insights

• Significant insider control over Capacit'e Infraprojects implies vested interests in company growth
• A total of 8 investors have a majority stake in the company with 52% ownership
• Institutions own 21% of Capacit'e Infraprojects

If you want to know who really controls Capacit'e Infraprojects Limited (NSE:CAPACITE), then you'll have to look at the makeup of its share registry. With 34% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by ₹3.5b.

In the chart below, we zoom in on the different ownership groups of Capacit'e Infraprojects.

View our latest analysis for Capacit'e Infraprojects

What Does The Institutional Ownership Tell Us About Capacit'e Infraprojects?

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.

We can see that Capacit'e Infraprojects does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Capacit'e Infraprojects, (below). Of course, keep in mind that there are other factors to consider, too.

Capacit'e Infraprojects is not owned by hedge funds. Our data shows that Katyal Merchandise Private Limited is the largest shareholder with 11% of shares outstanding. With 11% and 10% of the shares outstanding respectively, Rahul Katyal and Rohit Katyal are the second and third largest shareholders. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 Capacit'e Infraprojects

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders maintain a significant holding in Capacit'e Infraprojects Limited. Insiders have a ₹6.2b stake in this ₹18b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 12%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Capacit'e Infraprojects better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Capacit'e Infraprojects .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.