Insiders were the key beneficiaries as Dynamic Cables Limited's (NSE:DYCL) market cap rises to ₹18b

Key Insights

• Dynamic Cables' significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 68% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Dynamic Cables Limited (NSE:DYCL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 70% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by ₹4.9b last week.

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

See our latest analysis for Dynamic Cables

What Does The Lack Of Institutional Ownership Tell Us About Dynamic Cables?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Dynamic Cables' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Dynamic Cables. Looking at our data, we can see that the largest shareholder is Rahul Mangal with 36% of shares outstanding. Ashish Mangal is the second largest shareholder owning 32% of common stock, and Urvi Shah holds about 1.3% of the company stock. Ashish Mangal, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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 68% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Dynamic Cables

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

It seems that insiders own more than half the Dynamic Cables Limited stock. This gives them a lot of power. That means they own ₹12b worth of shares in the ₹18b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 29% stake in Dynamic Cables. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Dynamic Cables better, we need to consider many other factors. For instance, we've identified 1 warning sign for Dynamic Cables that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.