Dilip Buildcon Limited (NSE:DBL) Top Key Executive Dilip Suryavanshi's holdings dropped 9.6% in value as a result of the recent pullback

Key Insights

• Dilip Buildcon's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 62% of the company
• 11% of Dilip Buildcon is held by Institutions

A look at the shareholders of Dilip Buildcon Limited (NSE:DBL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 71% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 9.6% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Dilip Buildcon.

View our latest analysis for Dilip Buildcon

What Does The Institutional Ownership Tell Us About Dilip Buildcon?

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.

We can see that Dilip Buildcon 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 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.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Dilip Buildcon

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of Dilip Buildcon Limited. This means they can collectively make decisions for the company. So they have a ₹44b stake in this ₹62b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dilip Buildcon. 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.

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. To that end, you should be aware of the 2 warning signs we've spotted with Dilip Buildcon .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.