Stock Analysis

Insiders of Cantabil Retail India Limited (NSE:CANTABIL) were rewarded after last week’s 12% gain

NSEI:CANTABIL
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Key Insights

  • Cantabil Retail India's significant insider ownership suggests inherent interests in company's expansion
  • A total of 2 investors have a majority stake in the company with 63% ownership
  • Insiders have been buying lately

Every investor in Cantabil Retail India Limited (NSE:CANTABIL) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Insiders who purchased recently should be particularly happy after the stock gained 12% in the past week.

In the chart below, we zoom in on the different ownership groups of Cantabil Retail India.

See our latest analysis for Cantabil Retail India

ownership-breakdown
NSEI:CANTABIL Ownership Breakdown June 21st 2024

What Does The Institutional Ownership Tell Us About Cantabil Retail India?

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 Cantabil Retail India. 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 Cantabil Retail India's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:CANTABIL Earnings and Revenue Growth June 21st 2024

We note that hedge funds don't have a meaningful investment in Cantabil Retail India. From our data, we infer that the largest shareholder is Deepak Bansal (who also holds the title of Chief Operating Officer) with 35% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Vijay Bansal is the second largest shareholder owning 28% of common stock, and Sushila Bansal holds about 9.7% of the company stock. Interestingly, the second-largest shareholder, Vijay Bansal is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Cantabil Retail India

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 insiders own more than half of Cantabil Retail India Limited. This gives them effective control of the company. So they have a ₹15b stake in this ₹20b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Cantabil Retail India. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Cantabil Retail India better, we need to consider many other factors. Take risks for example - Cantabil Retail India has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Cantabil Retail India is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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

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.

Valuation is complex, but we're helping make it simple.

Find out whether Cantabil Retail India is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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