Do Institutions Own Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH) Shares?

Every investor in Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of ₹336b, Procter & Gamble Hygiene and Health Care is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Procter & Gamble Hygiene and Health Care.

View our latest analysis for Procter & Gamble Hygiene and Health Care

What Does The Institutional Ownership Tell Us About Procter & Gamble Hygiene and Health Care?

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 Procter & Gamble Hygiene and Health Care. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Procter & Gamble Hygiene and Health Care's historic earnings and revenue, below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Procter & Gamble Hygiene and Health Care. Looking at our data, we can see that the largest shareholder is The Procter & Gamble Company with 69% of shares outstanding. This implies that they have majority interest control of the future of the company. With 4.3% and 3.0% of the shares outstanding respectively, Life Insurance Corporation of India, Asset Management Arm and SBI Funds Management Private Limited 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. 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 Procter & Gamble Hygiene and Health Care

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our data suggests that insiders own under 1% of Procter & Gamble Hygiene and Health Care Limited in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ₹173m worth of shares (at current prices). 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 holds a 16% stake in PGHH. 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.

Public Company Ownership

We can see that public companies hold 69%, of the Procter & Gamble Hygiene and Health Care shares on issue. 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 Procter & Gamble Hygiene and Health Care better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Procter & Gamble Hygiene and Health Care you should know about.

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. 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.
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