Chaman Lal Setia Exports Ltd.'s (NSE:CLSEL) most bullish insider, Co-Chief Executive Officer Rajeev Setia must be pleased with the recent 10% gain

Key Insights

• Chaman Lal Setia Exports' significant insider ownership suggests inherent interests in company's expansion
• A total of 2 investors have a majority stake in the company with 72% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Chaman Lal Setia Exports Ltd. (NSE:CLSEL) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 79% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 10% gain.

In the chart below, we zoom in on the different ownership groups of Chaman Lal Setia Exports.

View our latest analysis for Chaman Lal Setia Exports

What Does The Lack Of Institutional Ownership Tell Us About Chaman Lal Setia Exports?

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 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. Chaman Lal Setia Exports might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Chaman Lal Setia Exports is not owned by hedge funds. From our data, we infer that the largest shareholder is Rajeev Setia (who also holds the title of Co-Chief Executive Officer) with 37% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Vijay Setia is the second largest shareholder owning 35% of common stock, and Manohar Devabhaktuni holds about 1.3% of the company stock. Interestingly, the second-largest shareholder, Vijay Setia is also Co-Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 72% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Chaman Lal Setia Exports

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.

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 Chaman Lal Setia Exports Ltd.. This gives them effective control of the company. Given it has a market cap of ₹21b, that means they have ₹16b worth of shares. 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 20% stake in Chaman Lal Setia Exports. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Chaman Lal Setia Exports (2 can't be ignored) that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.