While individual investors own 11% of Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK), state or government are its largest shareholders with 81% ownership

Key Insights

• Significant control over Mazagon Dock Shipbuilders by state or government implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is The Government of India with a 81% stake
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

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A look at the shareholders of Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are state or government with 81% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Individual investors, on the other hand, account for 11% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about Mazagon Dock Shipbuilders.

View our latest analysis for Mazagon Dock Shipbuilders

What Does The Institutional Ownership Tell Us About Mazagon Dock Shipbuilders?

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 Mazagon Dock Shipbuilders 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Mazagon Dock Shipbuilders' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Mazagon Dock Shipbuilders. Looking at our data, we can see that the largest shareholder is The Government of India with 81% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 3.3% and 0.6% of the stock.

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 Mazagon Dock Shipbuilders

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.

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 less than 1% of Mazagon Dock Shipbuilders Limited. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₹6.1b of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mazagon Dock Shipbuilders. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Take risks for example - Mazagon Dock Shipbuilders has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.