Public companies are Mahindra Holidays & Resorts India Limited's (NSE:MHRIL) biggest owners and were hit after market cap dropped ₹5.3b

Key Insights

• Mahindra Holidays & Resorts India's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Mahindra & Mahindra Limited with a 67% stake
• Recent sales by insiders

If you want to know who really controls Mahindra Holidays & Resorts India Limited (NSE:MHRIL), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 67% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to ₹73b last week, public companies would have faced the highest losses than any other shareholder groups of the company.

In the chart below, we zoom in on the different ownership groups of 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?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Mahindra Holidays & Resorts 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. 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 Mahindra Holidays & Resorts India, (below). Of course, keep in mind that there are other factors to consider, too.

Mahindra Holidays & Resorts India is not owned by hedge funds. Mahindra & Mahindra Limited is currently the largest shareholder, with 67% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. HDFC Asset Management Company Limited is the second largest shareholder owning 7.3% of common stock, and Norges Bank Investment Management holds about 2.6% of the company stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mahindra Holidays & Resorts 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.

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. As individuals, the insiders collectively own ₹753m worth of the ₹73b company. This shows at least some alignment. 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 19% stake in Mahindra Holidays & Resorts 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.

Public Company Ownership

Public companies currently own 67% of Mahindra Holidays & Resorts India stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Be aware that Mahindra Holidays & Resorts India is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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.