Stock Analysis

TAJGVK Hotels & Resorts Limited's (NSE:TAJGVK): Co-Chief Executive Officer Shalini Bhupal is the most bullish insider, and their stock value gained 11% last week

NSEI:TAJGVK
Source: Shutterstock

If you want to know who really controls TAJGVK Hotels & Resorts Limited (NSE:TAJGVK), 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 51% to be precise, is individual insiders. 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 11% gain.

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

However if you'd rather see where the opportunities and risks are within TAJGVK's industry, you can check out our analysis on the IN Hospitality industry.

ownership-breakdown
NSEI:TAJGVK Ownership Breakdown October 5th 2022
Advertisement

What Does The Institutional Ownership Tell Us About TAJGVK Hotels & Resorts?

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.

We can see that TAJGVK Hotels & Resorts does have institutional investors; and they hold a good portion of the company's stock. 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 TAJGVK Hotels & Resorts, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NSEI:TAJGVK Earnings and Revenue Growth October 5th 2022

Hedge funds don't have many shares in TAJGVK Hotels & Resorts. Our data suggests that Shalini Bhupal, who is also the company's Co-Chief Executive Officer, holds the most number of shares at 37%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 26% of the shares outstanding, followed by an ownership of 12% by the third-largest shareholder. Interestingly, the third-largest shareholder, Gunapati Reddy is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of TAJGVK Hotels & Resorts

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the TAJGVK Hotels & Resorts Limited stock. This gives them a lot of power. That means they own ₹6.7b worth of shares in the ₹13b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. 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 13% stake in TAJGVK Hotels & Resorts. 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

We can see that public companies hold 26% of the TAJGVK Hotels & Resorts shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with TAJGVK Hotels & Resorts (including 1 which is a bit unpleasant) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Valuation is complex, but we're here to simplify it.

Discover if TAJGVK Hotels & Resorts might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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.