The recent pullback must have dismayed Hatsun Agro Product Limited (NSE:HATSUN) insiders who own 76% of the company

Key Insights

• Insiders appear to have a vested interest in Hatsun Agro Product's growth, as seen by their sizeable ownership
• R. Chandramogan owns 55% of the company
• Institutions own 12% of Hatsun Agro Product

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If you want to know who really controls Hatsun Agro Product Limited (NSE:HATSUN), then you'll have to look at the makeup of its share registry. With 76% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 4.3%.

In the chart below, we zoom in on the different ownership groups of Hatsun Agro Product.

See our latest analysis for Hatsun Agro Product

What Does The Institutional Ownership Tell Us About Hatsun Agro Product?

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.

As you can see, institutional investors have a fair amount of stake in Hatsun Agro Product. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Hatsun Agro Product's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Hatsun Agro Product. R. Chandramogan is currently the company's largest shareholder with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 11% and 8.9% of the stock. C. Sathyan, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Hatsun Agro Product

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.

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 that insiders own more than half the Hatsun Agro Product Limited stock. This gives them a lot of power. Insiders own ₹178b worth of shares in the ₹235b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hatsun Agro Product. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hatsun Agro Product better, we need to consider many other factors. For example, we've discovered 2 warning signs for Hatsun Agro Product that you should be aware of before investing here.

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.