Associated Alcohols & Breweries Limited's (NSE:ASALCBR): Senior Key Executive Prasann Kedia is the most bullish insider, and their stock value gained 11% last week

Key Insights

• Significant insider control over Associated Alcohols & Breweries implies vested interests in company growth
• The top 5 shareholders own 51% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Associated Alcohols & Breweries Limited (NSE:ASALCBR), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ₹1.8b last week.

In the chart below, we zoom in on the different ownership groups of Associated Alcohols & Breweries.

See our latest analysis for Associated Alcohols & Breweries

What Does The Lack Of Institutional Ownership Tell Us About Associated Alcohols & Breweries?

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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Associated Alcohols & Breweries might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Associated Alcohols & Breweries. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Associated Alcohols & Breweries' case, its Senior Key Executive, Prasann Kedia, is the largest shareholder, holding 16% of shares outstanding. Anshuman Kedia is the second largest shareholder owning 11% of common stock, and Sweta Kedia holds about 8.5% of the company stock. Interestingly, the second-largest shareholder, Anshuman Kedia is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Associated Alcohols & Breweries

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. 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.

It seems that insiders own more than half the Associated Alcohols & Breweries Limited stock. This gives them a lot of power. That means they own ₹11b worth of shares in the ₹19b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Associated Alcohols & Breweries. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.