Likhitha Infrastructure Limited's (NSE:LIKHITHA): Senior Key Executive Srinivasa Gaddipati is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Insiders appear to have a vested interest in Likhitha Infrastructure's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Srinivasa Gaddipati with a 68% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Likhitha Infrastructure Limited (NSE:LIKHITHA) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 72% to be precise, is individual insiders. 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 ₹10b market cap following a 11% gain in the stock.

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

See our latest analysis for Likhitha Infrastructure

What Does The Lack Of Institutional Ownership Tell Us About Likhitha Infrastructure?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Likhitha Infrastructure's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Likhitha Infrastructure. Our data suggests that Srinivasa Gaddipati, who is also the company's Senior Key Executive, holds the most number of shares at 68%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. Sri Gaddipati is the second largest shareholder owning 1.9% of common stock, and Ashish Kacholia holds about 1.8% of the company stock.

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 Likhitha Infrastructure

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

It seems that insiders own more than half the Likhitha Infrastructure Limited stock. This gives them a lot of power. So they have a ₹7.3b stake in this ₹10b business. 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

The general public, who are usually individual investors, hold a 28% stake in Likhitha Infrastructure. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Likhitha Infrastructure you should be aware of.

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.