Public companies are Nahar Spinning Mills Limited's (NSE:NAHARSPING) biggest owners and were hit after market cap dropped ₹1.3b

Key Insights

• Significant control over Nahar Spinning Mills by public companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 65% of the company
• Insiders have been selling lately

If you want to know who really controls Nahar Spinning Mills Limited (NSE:NAHARSPING), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 65% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ₹9.0b last week, public companies would have faced the highest losses than any other shareholder groups of the company.

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

See our latest analysis for Nahar Spinning Mills

What Does The Lack Of Institutional Ownership Tell Us About Nahar Spinning Mills?

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. Nahar Spinning Mills' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Nahar Spinning Mills is not owned by hedge funds. Our data shows that Nahar Capital and Financial Services Limited is the largest shareholder with 46% of shares outstanding. Nahar Poly Films Limited is the second largest shareholder owning 19% of common stock, and Anil Goel holds about 5.1% of the company stock.

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.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Nahar Spinning Mills

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 some shares in Nahar Spinning Mills Limited. In their own names, insiders own ₹708m worth of stock in the ₹9.0b company. 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-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 65% of Nahar Spinning Mills. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 - Nahar Spinning Mills 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.

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.