Mahindra Holidays & Resorts India Limited's (NSE:MHRIL) biggest owners are public companies who got richer after stock soared 8.4% last week

Key Insights

• Significant control over Mahindra Holidays & Resorts India by public companies implies that the general public has more power to influence management and governance-related decisions
• 67% of the company is held by a single shareholder (Mahindra & Mahindra Limited)
• Recent sales by insiders

To get a sense of who is truly in control of Mahindra Holidays & Resorts India Limited (NSE:MHRIL), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 67% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies were the biggest beneficiaries of last week’s 8.4% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Mahindra Holidays & Resorts India.

View our latest analysis for Mahindra Holidays & Resorts India

What Does The Institutional Ownership Tell Us About Mahindra Holidays & Resorts 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 Mahindra Holidays & Resorts 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. 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 Mahindra Holidays & Resorts India's historic earnings and revenue below, but keep in mind there's always more to the story.

Mahindra Holidays & Resorts India is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Mahindra & Mahindra Limited with 67% of shares outstanding. This implies that they have majority interest control of the future of the company. HDFC Asset Management Company Limited is the second largest shareholder owning 7.5% of common stock, and Norges Bank Investment Management holds about 2.6% of the company stock.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Mahindra Holidays & Resorts India

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in Mahindra Holidays & Resorts India Limited. This is a big company, so it is good to see this level of alignment. Insiders own ₹1.8b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mahindra Holidays & Resorts India. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 67% of Mahindra Holidays & Resorts India stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

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