Public companies in Maharashtra Scooters Ltd. (NSE:MAHSCOOTER) are its biggest bettors, and their bets paid off as stock gained 12% last week

Key Insights

• The considerable ownership by public companies in Maharashtra Scooters indicates that they collectively have a greater say in management and business strategy
• Bajaj Holdings & Investment Limited owns 51% of the company
• 14% of Maharashtra Scooters is held by Institutions

If you want to know who really controls Maharashtra Scooters Ltd. (NSE:MAHSCOOTER), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 12% gain.

In the chart below, we zoom in on the different ownership groups of Maharashtra Scooters.

See our latest analysis for Maharashtra Scooters

What Does The Institutional Ownership Tell Us About Maharashtra Scooters?

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.

Maharashtra Scooters already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Maharashtra Scooters' earnings history below. Of course, the future is what really matters.

Maharashtra Scooters is not owned by hedge funds. Bajaj Holdings & Investment Limited is currently the company's largest shareholder with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 5.0% and 3.0% of the shares outstanding respectively, CD Equisearch Pvt Ltd, Asset Management Arm and GIC Asset Management Company Ltd. are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Maharashtra Scooters

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. 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.

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 see that insiders own shares in Maharashtra Scooters Ltd.. The insiders have a meaningful stake worth ₹2.3b. Most would see this as a real positive. 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

The general public, who are usually individual investors, hold a 31% stake in Maharashtra Scooters. 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

Public companies currently own 51% of Maharashtra Scooters 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Maharashtra Scooters better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Maharashtra Scooters you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.