Gujarat Ambuja Exports Limited's (NSE:GAEL) most bullish insider is CEO Manish Gupta, and their holdings value went up by 20% last week

By
Simply Wall St
Published
March 17, 2022
NSEI:GAEL
Source: Shutterstock

Every investor in Gujarat Ambuja Exports Limited (NSE:GAEL) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 67% to be precise, is individual insiders. 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 20% gain.

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

Check out our latest analysis for Gujarat Ambuja Exports

ownership-breakdown
NSEI:GAEL Ownership Breakdown March 17th 2022

What Does The Institutional Ownership Tell Us About Gujarat Ambuja Exports?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Less than 5% of Gujarat Ambuja Exports is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
NSEI:GAEL Earnings and Revenue Growth March 17th 2022

Hedge funds don't have many shares in Gujarat Ambuja Exports. The company's CEO Manish Gupta is the largest shareholder with 39% of shares outstanding. In comparison, the second and third largest shareholders hold about 22% and 5.5% of the stock.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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 Gujarat Ambuja 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.

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.

Our most recent data indicates that insiders own the majority of Gujarat Ambuja Exports Limited. This means they can collectively make decisions for the company. So they have a ₹40b stake in this ₹60b business. 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, who are usually individual investors, hold a 24% stake in Gujarat Ambuja Exports. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Gujarat Ambuja Exports , and understanding them should be part of your investment process.

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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