M.V.K. Agro Food Product Limited's (NSE:MVKAGRO) most bullish insider is CEO Marotrao Kawale, and their holdings value went up by 12% last week

Key Insights

• Insiders appear to have a vested interest in M.V.K. Agro Food Product's growth, as seen by their sizeable ownership
• Marotrao Kawale owns 54% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls M.V.K. Agro Food Product Limited (NSE:MVKAGRO), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 86% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₹8.9b market cap following a 12% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about M.V.K. Agro Food Product.

View our latest analysis for M.V.K. Agro Food Product

What Does The Lack Of Institutional Ownership Tell Us About M.V.K. Agro Food Product?

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of M.V.K. Agro Food Product, for yourself, below.

We note that hedge funds don't have a meaningful investment in M.V.K. Agro Food Product. The company's CEO Marotrao Kawale is the largest shareholder with 54% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's 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 with such skin in the game. With 27% and 1.3% of the shares outstanding respectively, Maroti Kawale and Sandip Kawale are the second and third largest shareholders.

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. 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 M.V.K. Agro Food Product

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own the majority of M.V.K. Agro Food Product Limited. This means they can collectively make decisions for the company. That means they own ₹7.7b worth of shares in the ₹8.9b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over M.V.K. Agro Food Product. 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 example, we've discovered 1 warning sign for M.V.K. Agro Food Product that you should be aware of before investing here.

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.