public companies who own 74% along with institutions invested in L&T Technology Services Limited (NSE:LTTS) saw increase in their holdings value last week

Key Insights

• The considerable ownership by public companies in L&T Technology Services indicates that they collectively have a greater say in management and business strategy
• 74% of the company is held by a single shareholder (Larsen & Toubro Limited)
• Insiders have been selling lately

If you want to know who really controls L&T Technology Services Limited (NSE:LTTS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 74% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 6.3% increase in the stock price last week, public companies profited the most, but institutions who own 14% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of L&T Technology Services, beginning with the chart below.

Check out our latest analysis for L&T Technology Services

What Does The Institutional Ownership Tell Us About L&T Technology Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

L&T Technology Services 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 L&T Technology Services, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in L&T Technology Services. Our data shows that Larsen & Toubro Limited is the largest shareholder with 74% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 6.8% and 1.4% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and Seafarer Capital Partners, LLC are the second and third largest shareholders.

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 L&T Technology Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 less than 1% of L&T Technology Services Limited. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₹3.9b worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 74% of L&T Technology Services. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with L&T Technology Services .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.