Marine Electricals (India) Limited's (NSE:MARINE) largest shareholders are private companies who were rewarded as market cap surged ₹3.1b last week

Key Insights

• Significant control over Marine Electricals (India) by private companies implies that the general public has more power to influence management and governance-related decisions
• 52% of the company is held by a single shareholder (M/s. KDU Enterprises Pvt. Ltd.)
• Insider ownership in Marine Electricals (India) is 23%

Our free stock report includes 1 warning sign investors should be aware of before investing in Marine Electricals (India). Read for free now.

Every investor in Marine Electricals (India) Limited (NSE:MARINE) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies were the biggest beneficiaries of last week’s 13% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Marine Electricals (India).

Check out our latest analysis for Marine Electricals (India)

What Does The Lack Of Institutional Ownership Tell Us About Marine Electricals (India)?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Marine Electricals (India) might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Marine Electricals (India) is not owned by hedge funds. Our data shows that M/s. KDU Enterprises Pvt. Ltd. is the largest shareholder with 52% of shares outstanding. This implies that they have majority interest control of the future of the company. Venkatesh Uchil is the second largest shareholder owning 22% of common stock, and Vinay Uchil holds about 0.9% of the company stock. Note that the second and third-largest shareholders are also Chief Executive Officer and Chairman of the Board, respectively, meaning that the company's top shareholders are insiders.

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

Insider Ownership Of Marine Electricals (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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Marine Electricals (India) Limited. Insiders own ₹6.0b worth of shares in the ₹26b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Marine Electricals (India). 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.

Private Company Ownership

We can see that Private Companies own 52%, of the shares on issue. 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. Be aware that Marine Electricals (India) is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.