Associated Alcohols & Breweries Limited's (NSE:ASALCBR): Senior Key Executive Prasann Kedia is the most bullish insider, and their stock value gained 15% last week

Key Insights

• Associated Alcohols & Breweries' significant insider ownership suggests inherent interests in company's expansion
• 55% of the business is held by the top 5 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Associated Alcohols & Breweries Limited (NSE:ASALCBR) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 72% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by ₹2.2b last week.

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

Check out our latest analysis for Associated Alcohols & Breweries

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

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Associated Alcohols & Breweries, for yourself, below.

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. The second and third largest shareholders are Ram Kedia and Anshuman Kedia, with an equal amount of shares to their name at 11%. Interestingly, the third-largest shareholder, Anshuman Kedia is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. 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.

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.

Our information suggests that insiders own more than half of Associated Alcohols & Breweries Limited. This gives them effective control of the company. That means they own ₹12b worth of shares in the ₹16b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 26% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Associated Alcohols & Breweries better, we need to consider many other factors. For instance, we've identified 1 warning sign for Associated Alcohols & Breweries that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.