The Sukhjit Starch & Chemicals Limited's (NSE:SUKHJITS) most bullish insider, CEO Kuldip Sardana must be pleased with the recent 13% gain

Key Insights

• Insiders appear to have a vested interest in Sukhjit Starch & Chemicals' growth, as seen by their sizeable ownership
• A total of 8 investors have a majority stake in the company with 51% ownership
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in The Sukhjit Starch & Chemicals Limited (NSE:SUKHJITS) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 70% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by ₹1.0b last week.

In the chart below, we zoom in on the different ownership groups of Sukhjit Starch & Chemicals.

Check out our latest analysis for Sukhjit Starch & Chemicals

What Does The Lack Of Institutional Ownership Tell Us About Sukhjit Starch & Chemicals?

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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Sukhjit Starch & Chemicals, for yourself, below.

Sukhjit Starch & Chemicals is not owned by hedge funds. The company's CEO Kuldip Sardana is the largest shareholder with 12% of shares outstanding. With 11% and 6.1% of the shares outstanding respectively, Manjoo Sardana and Bhavdeep Sardana are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Sukhjit Starch & Chemicals

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.

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.

Our most recent data indicates that insiders own the majority of The Sukhjit Starch & Chemicals Limited. This means they can collectively make decisions for the company. So they have a ₹6.0b stake in this ₹8.5b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sukhjit Starch & Chemicals. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Sukhjit Starch & Chemicals better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Sukhjit Starch & Chemicals .

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.