State or government among Indian Railway Catering & Tourism Corporation Limited's (NSE:IRCTC) largest shareholders, saw gain in holdings value after stock jumped 5.4% last week

Key Insights

• Indian Railway Catering & Tourism's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 62% of the company is held by a single shareholder (India)
• Institutional ownership in Indian Railway Catering & Tourism is 16%

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A look at the shareholders of Indian Railway Catering & Tourism Corporation Limited (NSE:IRCTC) can tell us which group is most powerful. With 63% stake, state or government possess the maximum shares in the company. 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, state or government collectively scored the highest last week as the company hit ₹644b market cap following a 5.4% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Indian Railway Catering & Tourism.

See our latest analysis for Indian Railway Catering & Tourism

What Does The Institutional Ownership Tell Us About Indian Railway Catering & Tourism?

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.

Indian Railway Catering & Tourism already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Indian Railway Catering & Tourism, (below). Of course, keep in mind that there are other factors to consider, too.

Indian Railway Catering & Tourism is not owned by hedge funds. The company's largest shareholder is India, with ownership of 62%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 10% and 1.0% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and The Vanguard Group, Inc. 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Indian Railway Catering & Tourism

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. 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 information suggests that Indian Railway Catering & Tourism Corporation Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₹2.6m 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 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Indian Railway Catering & Tourism. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Indian Railway Catering & Tourism that you should be aware of.

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.