Great week for Kalpataru Projects International Limited (NSE:KPIL) institutional investors after losing 3.7% over the previous year

Key Insights

• Significantly high institutional ownership implies Kalpataru Projects International's stock price is sensitive to their trading actions
• A total of 5 investors have a majority stake in the company with 51% ownership
• 12% of Kalpataru Projects International is held by insiders

A look at the shareholders of Kalpataru Projects International Limited (NSE:KPIL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 49% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week's ₹19b market cap gain would probably be appreciated by institutional investors, especially after a year of 3.7% losses.

In the chart below, we zoom in on the different ownership groups of Kalpataru Projects International.

Check out our latest analysis for Kalpataru Projects International

What Does The Institutional Ownership Tell Us About Kalpataru Projects International?

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.

Kalpataru Projects International already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Kalpataru Projects International'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 Kalpataru Projects International. Looking at our data, we can see that the largest shareholder is K.C.Holdings Pvt. Ltd. with 12% of shares outstanding. With 11% and 10% of the shares outstanding respectively, ICICI Prudential Asset Management Company Limited and Mofatraj Munot are the second and third largest shareholders. Mofatraj Munot, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Kalpataru Projects International

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own a reasonable proportion of Kalpataru Projects International Limited. Insiders own ₹21b worth of shares in the ₹174b company. That's quite meaningful. 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

The general public, who are usually individual investors, hold a 17% stake in Kalpataru Projects International. 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 21%, of the Kalpataru Projects International stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Kalpataru Projects International (including 1 which is significant) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.