Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH) most popular amongst public companies who own 71% of the shares, institutions hold 16%

Key Insights

• Significant control over Procter & Gamble Hygiene and Health Care 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 The Procter & Gamble Company with a 71% stake
• Institutional ownership in Procter & Gamble Hygiene and Health Care is 16%

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If you want to know who really controls Procter & Gamble Hygiene and Health Care Limited (NSE:PGHH), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 71% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 16% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Procter & Gamble Hygiene and Health Care.

Check out our latest analysis for Procter & Gamble Hygiene and Health Care

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

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.

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. 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 Procter & Gamble Hygiene and Health Care, (below). Of course, keep in mind that there are other factors to consider, too.

Procter & Gamble Hygiene and Health Care is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is The Procter & Gamble Company with 71% of shares outstanding. This implies that they have majority interest control of the future of the company. SBI Funds Management Limited is the second largest shareholder owning 5.6% of common stock, and Life Insurance Corporation of India holds about 4.1% of the company stock.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

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

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 data suggests that insiders own under 1% of Procter & Gamble Hygiene and Health Care Limited in their own names. Keep in mind that it's a big company, and the insiders own ₹657k worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Procter & Gamble Hygiene and Health Care. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 71% of Procter & Gamble Hygiene and Health Care. 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. To that end, you should be aware of the 1 warning sign we've spotted with Procter & Gamble Hygiene and Health Care .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.