Public companies are Shree Renuka Sugars Limited's (NSE:RENUKA) biggest owners and were rewarded after market cap rose by ₹18b last week

Key Insights

• Significant control over Shree Renuka Sugars by public companies implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is Wilmar International Limited with a 62% stake
• 12% of Shree Renuka Sugars is held by Institutions

A look at the shareholders of Shree Renuka Sugars Limited (NSE:RENUKA) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 62% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit ₹94b market cap following a 21% gain in the stock.

Let's delve deeper into each type of owner of Shree Renuka Sugars, beginning with the chart below.

View our latest analysis for Shree Renuka Sugars

What Does The Institutional Ownership Tell Us About Shree Renuka Sugars?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Shree Renuka Sugars already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shree Renuka Sugars' historic earnings and revenue below, but keep in mind there's always more to the story.

Shree Renuka Sugars is not owned by hedge funds. Wilmar International Limited is currently the largest shareholder, with 62% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 8.1% and 1.5% of the shares outstanding respectively, ICICI Bank Ltd., Asset Management Arm and The Vanguard Group, Inc. are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Shree Renuka Sugars

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 Shree Renuka Sugars Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₹37m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Shree Renuka Sugars. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 62% of Shree Renuka Sugars. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Shree Renuka Sugars , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free 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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com