After the recent decline, Dilip Buildcon Limited (NSE:DBL) Top Key Executive Dilip Suryavanshi's holdings have lost 5.7% of their value

Key Insights

• Dilip Buildcon's significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 62% ownership
• Institutional ownership in Dilip Buildcon is 12%

Every investor in Dilip Buildcon Limited (NSE:DBL) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 71% ownership. 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 ₹4.7b.

Let's delve deeper into each type of owner of Dilip Buildcon, beginning with the chart below.

Check out our latest analysis for Dilip Buildcon

What Does The Institutional Ownership Tell Us About Dilip Buildcon?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Dilip Buildcon. 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 Dilip Buildcon, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Dilip Buildcon. Our data suggests that Dilip Suryavanshi, who is also the company's Top Key Executive, holds the most number of shares at 38%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Meanwhile, the second and third largest shareholders, hold 24% and 8.1%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Devendra Jain is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 62% stake.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Dilip Buildcon

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.

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.

It seems that insiders own more than half the Dilip Buildcon Limited stock. This gives them a lot of power. Given it has a market cap of ₹77b, that means they have ₹55b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Dilip Buildcon. 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.

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. Be aware that Dilip Buildcon is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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.