CCL Products (India) Limited's (NSE:CCL) top holders are insiders and they are likely disappointed by the recent 5.7% drop

Key Insights

• Significant insider control over CCL Products (India) implies vested interests in company growth
• The top 4 shareholders own 50% of the company
• Institutional ownership in CCL Products (India) is 28%

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To get a sense of who is truly in control of CCL Products (India) Limited (NSE:CCL), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 48% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.7% decline in share price, insiders suffered the most losses.

Let's delve deeper into each type of owner of CCL Products (India), beginning with the chart below.

View our latest analysis for CCL Products (India)

What Does The Institutional Ownership Tell Us About CCL Products (India)?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

CCL Products (India) already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at CCL Products (India)'s earnings history below. Of course, the future is what really matters.

CCL Products (India) is not owned by hedge funds. Our data shows that Shantha Challa is the largest shareholder with 24% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 10%, of the shares outstanding, respectively. Interestingly, the bottom two of the top three shareholders also hold the title of Senior Key Executive and Chairman of the Board, respectively, suggesting that these insiders have a personal stake in the company.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of CCL Products (India)

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of CCL Products (India) Limited. Insiders own ₹55b worth of shares in the ₹116b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public-- including retail investors -- own 24% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CCL Products (India) better, we need to consider many other factors. Be aware that CCL Products (India) is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.