Stock Analysis

What Kind Of Shareholders Own Rudrabhishek Enterprises Limited (NSE:REPL)?

NSEI:REPL
Source: Shutterstock

Every investor in Rudrabhishek Enterprises Limited (NSE:REPL) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Rudrabhishek Enterprises is not a large company by global standards. It has a market capitalization of ₹776m, which means it wouldn't have the attention of many institutional investors. Taking a look at the our data on the ownership groups (below), it's seems that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about REPL.

View our latest analysis for Rudrabhishek Enterprises

NSEI:REPL Ownership Summary December 26th 18
NSEI:REPL Ownership Summary December 26th 18

What Does The Lack Of Institutional Ownership Tell Us About Rudrabhishek Enterprises?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Rudrabhishek Enterprises might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

NSEI:REPL Income Statement Export December 26th 18
NSEI:REPL Income Statement Export December 26th 18

Hedge funds don't have many shares in Rudrabhishek Enterprises. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Rudrabhishek Enterprises

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. 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.

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.

It seems that insiders own more than half the Rudrabhishek Enterprises Limited stock. This gives them a lot of power. Given it has a market cap of ₹776m, that means they have ₹515m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 26% stake in REPL. 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

It seems that Private Companies own 7.3%, of the REPL stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfree list of interesting companies, backed by strong financial data.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.