Siemens Energy India Limited's (NSE:ENRIN) top owners are public companies with 74% stake, while 18% is held by individual investors
Key Insights
- Siemens Energy India's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- The largest shareholder of the company is Siemens Aktiengesellschaft with a 69% stake
- Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
To get a sense of who is truly in control of Siemens Energy India Limited (NSE:ENRIN), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 74% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 18% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of Siemens Energy India.
See our latest analysis for Siemens Energy India
What Does The Institutional Ownership Tell Us About Siemens Energy India?
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.
As you can see, institutional investors have a fair amount of stake in Siemens Energy India. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Siemens Energy India's earnings history below. Of course, the future is what really matters.
Siemens Energy India is not owned by hedge funds. Siemens Aktiengesellschaft is currently the largest shareholder, with 69% of shares outstanding. This implies that they have majority interest control of the future of the company. Siemens Energy AG is the second largest shareholder owning 5.0% of common stock, and Motilal Oswal Asset Management Company Limited holds about 1.2% of the company stock.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Siemens Energy India
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. 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.
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.
We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
The general public-- including retail investors -- own 18% 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.
Public Company Ownership
Public companies currently own 74% of Siemens Energy India stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Siemens Energy India better, we need to consider many other factors.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.