NBCC (India) Limited's (NSE:NBCC) largest shareholders are state or government who were rewarded as market cap surged ₹28b last week

Key Insights

• The considerable ownership by state or government in NBCC (India) indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Ministry of Housing and Urban Poverty Alleviation, Government of India with a 62% stake
• Institutional ownership in NBCC (India) is 12%

If you want to know who really controls NBCC (India) Limited (NSE:NBCC), then you'll have to look at the makeup of its share registry. We can see that state or government own the lion's share in the company with 62% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, state or government collectively scored the highest last week as the company hit ₹287b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of NBCC (India).

Check out our latest analysis for NBCC (India)

What Does The Institutional Ownership Tell Us About NBCC (India)?

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.

NBCC (India) already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 NBCC (India)'s earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in NBCC (India). Ministry of Housing and Urban Poverty Alleviation, Government of India is currently the largest shareholder, with 62% of shares outstanding. This implies that they have majority interest control of the future of the company. With 6.5% and 2.3% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and Nippon Life India Asset Management Limited are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of NBCC (India)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own less than 1% of NBCC (India) Limited. Keep in mind that it's a big company, and the insiders own ₹798k worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if 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 NBCC (India). 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 NBCC (India) better, we need to consider many other factors. Be aware that NBCC (India) is showing 3 warning signs in our investment analysis , you should know about...

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.

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