GHCL Textiles Limited's (NSE:GHCLTEXTIL) biggest owners are individual investors who got richer after stock soared 15% last week

Key Insights

• Significant control over GHCL Textiles by individual investors implies that the general public has more power to influence management and governance-related decisions
• 50% of the business is held by the top 22 shareholders
• 24% of GHCL Textiles is held by Institutions

Every investor in GHCL Textiles Limited (NSE:GHCLTEXTIL) should be aware of the most powerful shareholder groups. With 47% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, individual investors benefitted the most after the company's market cap rose by ₹1.1b last week.

Let's take a closer look to see what the different types of shareholders can tell us about GHCL Textiles.

View our latest analysis for GHCL Textiles

What Does The Institutional Ownership Tell Us About GHCL Textiles?

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.

GHCL Textiles already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 GHCL Textiles' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in GHCL Textiles. DSP BlackRock Investment Managers Pvt. Ltd. is currently the largest shareholder, with 6.3% of shares outstanding. Ares Diversified Fund is the second largest shareholder owning 4.9% of common stock, and Athena Capital Partners LLP, Asset Management Arm holds about 3.1% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 22 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of GHCL Textiles

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.

Shareholders would probably be interested to learn that insiders own shares in GHCL Textiles Limited. It has a market capitalization of just ₹8.8b, and insiders have ₹160m worth of shares, in their own names. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 47% stake in GHCL Textiles. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 26%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand GHCL Textiles better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with GHCL Textiles .

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.

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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.