public companies who own 52% along with institutions invested in Grindwell Norton Limited (NSE:GRINDWELL) saw increase in their holdings value last week

Key Insights

• The considerable ownership by public companies in Grindwell Norton indicates that they collectively have a greater say in management and business strategy
• 52% of the company is held by a single shareholder (Compagnie de Saint-Gobain S.A.)
• Institutional ownership in Grindwell Norton is 22%

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To get a sense of who is truly in control of Grindwell Norton Limited (NSE:GRINDWELL), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 52% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 4.4% increase in the stock price last week, public companies profited the most, but institutions who own 22% stock also stood to gain from the increase.

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

See our latest analysis for Grindwell Norton

What Does The Institutional Ownership Tell Us About Grindwell Norton?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Grindwell Norton. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Grindwell Norton's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Grindwell Norton. Compagnie de Saint-Gobain S.A. is currently the company's largest shareholder with 52% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 8.1% and 2.1% of the shares outstanding respectively, SBI Funds Management Limited and UTI Asset Management Company Limited are the second and third largest shareholders.

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 Grindwell Norton

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can see that insiders own shares in Grindwell Norton Limited. This is a big company, so it is good to see this level of alignment. Insiders own ₹11b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Grindwell Norton. 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.

Public Company Ownership

It appears to us that public companies own 52% of Grindwell Norton. 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:

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.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.