Public companies are PTC India Financial Services Limited's (NSE:PFS) biggest owners and were hit after market cap dropped ₹2.9b

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
• 65% of the company is held by a single shareholder (PTC India Limited)
• 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 PTC India Financial Services Limited (NSE:PFS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 65% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to ₹26b last week, public companies would have faced the highest losses than any other shareholder groups of the company.

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?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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. The company's largest shareholder is PTC India Limited, with ownership of 65%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 2.9% and 2.1% of the shares outstanding respectively, Bandhan AMC Limited and Life Insurance Corporation of India, Asset Management Arm 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. 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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 28% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 65% of the PTC India Financial Services 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 PTC India Financial Services better, we need to consider many other factors. For instance, we've identified 2 warning signs for PTC India Financial Services that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.