Insiders were the biggest winners as V.S.T. Tillers Tractors Limited's (NSE:VSTTILLERS) market cap grew by ₹3.6b last week

Key Insights

• Insiders appear to have a vested interest in V.S.T. Tillers Tractors' growth, as seen by their sizeable ownership
• 53% of the business is held by the top 6 shareholders
• Institutions own 24% of V.S.T. Tillers Tractors

A look at the shareholders of V.S.T. Tillers Tractors Limited (NSE:VSTTILLERS) can tell us which group is most powerful. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. 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, insiders scored the highest last week as the company hit ₹37b market cap following a 11% gain in the stock.

Let's delve deeper into each type of owner of V.S.T. Tillers Tractors, beginning with the chart below.

Check out our latest analysis for V.S.T. Tillers Tractors

What Does The Institutional Ownership Tell Us About V.S.T. Tillers Tractors?

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.

As you can see, institutional investors have a fair amount of stake in V.S.T. Tillers Tractors. 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. 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 V.S.T. Tillers Tractors' historic earnings and revenue below, but keep in mind there's always more to the story.

V.S.T. Tillers Tractors is not owned by hedge funds. The company's largest shareholder is Vellore Surendra, with ownership of 23%. With 8.3% and 7.2% of the shares outstanding respectively, Nippon Life India Asset Management Limited and V. Vijayendra are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of V.S.T. Tillers Tractors

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 V.S.T. Tillers Tractors Limited. Insiders have a ₹16b stake in this ₹37b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in V.S.T. Tillers Tractors. 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

Our data indicates that Private Companies hold 8.5%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for V.S.T. Tillers Tractors you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.