J. Kumar Infraprojects Limited (NSE:JKIL) Top Key Executive Jagdishkumar Gupta, the company's largest shareholder sees 6.8%reduction in holdings value

Key Insights

• J. Kumar Infraprojects' significant insider ownership suggests inherent interests in company's expansion
• The top 6 shareholders own 51% of the company
• Institutions own 22% of J. Kumar Infraprojects

Every investor in J. Kumar Infraprojects Limited (NSE:JKIL) should be aware of the most powerful shareholder groups. With 38% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by ₹4.4b.

In the chart below, we zoom in on the different ownership groups of J. Kumar Infraprojects.

View our latest analysis for J. Kumar Infraprojects

What Does The Institutional Ownership Tell Us About J. Kumar Infraprojects?

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 J. Kumar Infraprojects 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 J. Kumar Infraprojects, (below). Of course, keep in mind that there are other factors to consider, too.

J. Kumar Infraprojects is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In J. Kumar Infraprojects' case, its Top Key Executive, Jagdishkumar Gupta, is the largest shareholder, holding 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.7% and 8.5% of the stock. Furthermore, CEO Kamal Gupta is the owner of 7.0% of the company's shares.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of J. Kumar Infraprojects

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.

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 maintain a significant holding in J. Kumar Infraprojects Limited. Insiders have a ₹23b stake in this ₹59b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in J. Kumar Infraprojects. 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 16%, of the J. Kumar Infraprojects stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand J. Kumar Infraprojects better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with J. Kumar Infraprojects .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com