Kalyan Jewellers India Limited's (NSE:KALYANKJIL): Top Key Executive Seetharama Iyer Kalyanaraman is the most bullish insider, and their stock value gained 4.3% last week

Key Insights

• Kalyan Jewellers India's significant insider ownership suggests inherent interests in company's expansion
• A total of 3 investors have a majority stake in the company with 60% ownership
• 23% of Kalyan Jewellers India is held by Institutions

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To get a sense of who is truly in control of Kalyan Jewellers India Limited (NSE:KALYANKJIL), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders were the biggest beneficiaries of last week’s 4.3% gain.

Let's delve deeper into each type of owner of Kalyan Jewellers India, beginning with the chart below.

Check out our latest analysis for Kalyan Jewellers India

What Does The Institutional Ownership Tell Us About Kalyan Jewellers India?

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.

As you can see, institutional investors have a fair amount of stake in Kalyan Jewellers India. 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. 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 Kalyan Jewellers India, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Kalyan Jewellers India. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Kalyan Jewellers India's case, its Top Key Executive, Seetharama Iyer Kalyanaraman, is the largest shareholder, holding 24% of shares outstanding. The second and third largest shareholders are Ramesh Kalyanaraman and Seetharam Kalyanaraman, with an equal amount of shares to their name at 18%. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

To make our study more interesting, we found that the top 3 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Kalyan Jewellers 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. 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 most recent data indicates that insiders own the majority of Kalyan Jewellers India Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹530b, that means insiders have a whopping ₹320b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in Kalyan Jewellers India. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Kalyan Jewellers India , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.