PTC India Financial Services Limited's (NSE:PFS) market cap surged ₹2.1b last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Significant control over PTC India Financial Services by public companies implies that the general public has more power to influence management and governance-related decisions
• PTC India Limited owns 65% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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Every investor in PTC India Financial Services Limited (NSE:PFS) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by ₹2.1b last week.

Let's delve deeper into each type of owner of PTC India Financial Services, beginning with the chart below.

See our latest analysis for PTC India Financial Services

What Does The Institutional Ownership Tell Us About PTC India Financial Services?

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.

PTC India Financial Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see PTC India Financial Services' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in PTC India Financial Services. PTC India Limited is currently the company's largest shareholder with 65% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.5% and 2.0% of the shares outstanding respectively, Bandhan AMC Limited and Life Insurance Corporation of India, Asset Management Arm are the second and third largest shareholders.

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 PTC India Financial Services

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 29% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 65% of PTC India Financial Services. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that PTC India Financial Services is showing 1 warning sign in our investment analysis , 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.