Shree Renuka Sugars Limited's (NSE:RENUKA) biggest owners are public companies who got richer after stock soared 12% 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
• Wilmar International Limited owns 62% of the company
• 12% of Shree Renuka Sugars is held by Institutions

To get a sense of who is truly in control of Shree Renuka Sugars Limited (NSE:RENUKA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 62% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies collectively scored the highest last week as the company hit ₹113b market cap following a 12% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Shree Renuka Sugars.

See our latest analysis for Shree Renuka Sugars

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

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 Shree Renuka Sugars. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Shree Renuka Sugars, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Shree Renuka Sugars. Looking at our data, we can see that the largest shareholder is Wilmar International Limited with 62% of shares outstanding. This implies that they have majority interest 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.

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. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data suggests that insiders own under 1% of Shree Renuka Sugars Limited in their own names. Keep in mind that it's a big company, and the insiders own ₹40m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

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

Public companies currently own 62% of Shree Renuka Sugars stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Shree Renuka Sugars better, we need to consider many other factors. For instance, we've identified 2 warning signs for Shree Renuka Sugars that you should be aware of.

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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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.