Public companies invested in Maharashtra Scooters Ltd. (NSE:MAHSCOOTER) copped the brunt of last week's ₹16b market cap decline

Key Insights

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

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Every investor in Maharashtra Scooters Ltd. (NSE:MAHSCOOTER) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies as a group endured the highest losses last week after market cap fell by ₹16b.

Let's take a closer look to see what the different types of shareholders can tell us about Maharashtra Scooters.

See our latest analysis for Maharashtra Scooters

What Does The Institutional Ownership Tell Us About Maharashtra Scooters?

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.

Maharashtra Scooters already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Maharashtra Scooters, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Maharashtra Scooters. Bajaj Holdings & Investment Limited is currently the largest shareholder, with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.0% and 3.0% of the shares outstanding respectively, CD Equisearch Private Limited and Conifer Management, LLC are the second and third largest shareholders.

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. 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 Maharashtra Scooters

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.

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 Maharashtra Scooters Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own ₹2.7b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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

We can see that public companies hold 51% of the Maharashtra Scooters shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. For instance, we've identified 1 warning sign for Maharashtra Scooters that you should be aware of.

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.