Dilip Buildcon Limited's (NSE:DBL) most bullish insider is Top Key Executive Dilip Suryavanshi, and their holdings value went up by 13% last week

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

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To get a sense of who is truly in control of Dilip Buildcon Limited (NSE:DBL), it is important to understand the ownership structure of the business. With 71% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ₹70b market cap following a 13% gain in the stock.

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

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.

We can see that Dilip Buildcon does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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.

We note that hedge funds don't have a meaningful investment in Dilip Buildcon. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Dilip Buildcon's case, its Top Key Executive, Dilip Suryavanshi, is the largest shareholder, holding 38% of shares outstanding. 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.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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. 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 information suggests that insiders own more than half of Dilip Buildcon Limited. This gives them effective control of the company. So they have a ₹50b stake in this ₹70b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dilip Buildcon. 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

It seems that Private Companies own 7.2%, of the Dilip Buildcon stock. 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 Dilip Buildcon better, we need to consider many other factors. For example, we've discovered 3 warning signs for Dilip Buildcon that you should be aware of before investing here.

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.