Dixon Technologies (India) Limited's (NSE:DIXON) high institutional ownership speaks for itself as stock continues to impress, up 5.6% over last week

Key Insights

• Significantly high institutional ownership implies Dixon Technologies (India)'s stock price is sensitive to their trading actions
• 52% of the business is held by the top 9 shareholders
• Insiders own 19% of Dixon Technologies (India)

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Every investor in Dixon Technologies (India) Limited (NSE:DIXON) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And as as result, institutional investors reaped the most rewards after the company's stock price gained 5.6% last week. One-year return to shareholders is currently 19% and last week’s gain was the icing on the cake.

Let's take a closer look to see what the different types of shareholders can tell us about Dixon Technologies (India).

View our latest analysis for Dixon Technologies (India)

What Does The Institutional Ownership Tell Us About Dixon Technologies (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.

We can see that Dixon Technologies (India) does have institutional investors; and they hold a good portion of the company's stock. 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 Dixon Technologies (India)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Dixon Technologies (India) is not owned by hedge funds. Psv Family Trust is currently the largest shareholder, with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 5.0%, of the shares outstanding, respectively. Sunil Vachani, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. In addition, we found that Atul Lall, the CEO has 3.3% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 9 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 Dixon Technologies (India)

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.

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.

It seems insiders own a significant proportion of Dixon Technologies (India) Limited. It is very interesting to see that insiders have a meaningful ₹199b stake in this ₹1.0t business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in Dixon Technologies (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.

Private Company Ownership

We can see that Private Companies own 20%, of the shares on issue. 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. Take risks for example - Dixon Technologies (India) has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.