Public companies among Godrej Agrovet Limited's (NSE:GODREJAGRO) largest stockholders and were hit after last week's 4.1% price drop

Key Insights

• Godrej Agrovet's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 65% of the company is held by a single shareholder (Godrej Industries Limited)
• Institutional ownership in Godrej Agrovet is 11%

If you want to know who really controls Godrej Agrovet Limited (NSE:GODREJAGRO), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, public companies endured the biggest losses as the stock fell by 4.1%.

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

Check out our latest analysis for Godrej Agrovet

What Does The Institutional Ownership Tell Us About Godrej Agrovet?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Godrej Agrovet 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 Godrej Agrovet's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Godrej Agrovet. Godrej Industries Limited is currently the company's largest shareholder with 65% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Temasek Holdings (Private) Limited is the second largest shareholder owning 4.2% of common stock, and Life Insurance Corporation of India, Asset Management Arm holds about 2.3% of the company stock. Additionally, the company's CEO Balram Yadav directly holds 1.7% of the total shares outstanding.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Godrej Agrovet

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.

We can see that insiders own shares in Godrej Agrovet Limited. The insiders have a meaningful stake worth ₹6.1b. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 13% 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.

Private Company Ownership

It seems that Private Companies own 6.4%, of the Godrej Agrovet stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

It appears to us that public companies own 65% of Godrej Agrovet. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 1 warning sign for Godrej Agrovet that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.