KRN Heat Exchanger and Refrigeration Limited (NSE:KRN) Senior Key Executive Anju Devi's holdings dropped 8.3% in value as a result of the recent pullback

Key Insights

• KRN Heat Exchanger and Refrigeration's significant insider ownership suggests inherent interests in company's expansion
• The top 2 shareholders own 71% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in KRN Heat Exchanger and Refrigeration Limited (NSE:KRN) should be aware of the most powerful shareholder groups. With 72% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ₹54b last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's take a closer look to see what the different types of shareholders can tell us about KRN Heat Exchanger and Refrigeration.

View our latest analysis for KRN Heat Exchanger and Refrigeration

What Does The Institutional Ownership Tell Us About KRN Heat Exchanger and Refrigeration?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Since institutions own only a small portion of KRN Heat Exchanger and Refrigeration, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

We note that hedge funds don't have a meaningful investment in KRN Heat Exchanger and Refrigeration. From our data, we infer that the largest shareholder is Anju Devi (who also holds the title of Senior Key Executive) with 38% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. With 33% and 1.6% of the shares outstanding respectively, Santosh Yadav and Mukul Mahavir Agrawal are the second and third largest shareholders. Interestingly, the second-largest shareholder, Santosh Yadav is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of KRN Heat Exchanger and Refrigeration

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.

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.

Our most recent data indicates that insiders own the majority of KRN Heat Exchanger and Refrigeration Limited. This means they can collectively make decisions for the company. So they have a ₹39b stake in this ₹54b business. 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

With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over KRN Heat Exchanger and Refrigeration. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand KRN Heat Exchanger and Refrigeration better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with KRN Heat Exchanger and Refrigeration , and understanding them should be part of your investment process.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.