Indo Thai Securities Limited's (NSE:INDOTHAI) Senior Key Executive Dhanpal Doshi is the most upbeat insider, and their holdings increased by 17% last week

Key Insights

• Significant insider control over Indo Thai Securities implies vested interests in company growth
• The top 4 shareholders own 53% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of Indo Thai Securities Limited (NSE:INDOTHAI), 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 68% 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 scored the highest last week as the company hit ₹17b market cap following a 17% gain in the stock.

Let's delve deeper into each type of owner of Indo Thai Securities, beginning with the chart below.

Check out our latest analysis for Indo Thai Securities

What Does The Lack Of Institutional Ownership Tell Us About Indo Thai Securities?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Indo Thai Securities, for yourself, below.

Indo Thai Securities is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Indo Thai Securities' case, its Senior Key Executive, Dhanpal Doshi, is the largest shareholder, holding 15% of shares outstanding. Varsha Doshi is the second largest shareholder owning 15% of common stock, and Parasmal Doshi holds about 13% of the company stock. Interestingly, the third-largest shareholder, Parasmal Doshi is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders. Additionally, the company's CEO Sarthak Doshi directly holds 5.5% of the total shares outstanding.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Indo Thai Securities

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders own more than half of Indo Thai Securities Limited. This gives them effective control of the company. Given it has a market cap of ₹17b, that means they have ₹11b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 27% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Indo Thai Securities. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 4.9%, of the Indo Thai Securities stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Indo Thai Securities better, we need to consider many other factors. For example, we've discovered 1 warning sign for Indo Thai Securities that you should be aware of before investing here.

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.

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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.