The recent 6.1% gain must have brightened CEO Ajay Thakker's week, Jupiter Life Line Hospitals Limited's (NSE:JLHL) most bullish insider

Key Insights

• Significant insider control over Jupiter Life Line Hospitals implies vested interests in company growth
• 51% of the business is held by the top 8 shareholders
• Institutional ownership in Jupiter Life Line Hospitals is 19%

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To get a sense of who is truly in control of Jupiter Life Line Hospitals Limited (NSE:JLHL), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 50% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₹6.1b last week.

Let's delve deeper into each type of owner of Jupiter Life Line Hospitals, beginning with the chart below.

Check out our latest analysis for Jupiter Life Line Hospitals

What Does The Institutional Ownership Tell Us About Jupiter Life Line Hospitals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Jupiter Life Line Hospitals. 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. 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 Jupiter Life Line Hospitals' earnings history below. Of course, the future is what really matters.

Jupiter Life Line Hospitals is not owned by hedge funds. With a 21% stake, CEO Ajay Thakker is the largest shareholder. Meanwhile, the second and third largest shareholders, hold 8.7% and 6.7%, of the shares outstanding, respectively. Interestingly, the third-largest shareholder, Ankit Thakker is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We did some more digging and found that 8 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jupiter Life Line Hospitals

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Jupiter Life Line Hospitals Limited stock. This gives them a lot of power. Given it has a market cap of ₹105b, that means insiders have a whopping ₹53b worth of shares in their own names. 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 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jupiter Life Line Hospitals. 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.

Private Company Ownership

It seems that Private Companies own 11%, of the Jupiter Life Line Hospitals stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.