Public companies are Aeroflex Industries Limited's (NSE:AEROFLEX) biggest owners and were hit after market cap dropped ₹2.1b

Key Insights

• Significant control over Aeroflex Industries by public companies implies that the general public has more power to influence management and governance-related decisions
• 67% of the company is held by a single shareholder (Sat Industries Limited)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Aeroflex Industries Limited (NSE:AEROFLEX), 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 67% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, public companies endured the biggest losses as the stock fell by 12%.

In the chart below, we zoom in on the different ownership groups of Aeroflex Industries.

View our latest analysis for Aeroflex Industries

What Does The Institutional Ownership Tell Us About Aeroflex Industries?

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.

Aeroflex Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Aeroflex Industries' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Aeroflex Industries. Sat Industries Limited is currently the company's largest shareholder with 67% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Ashish Kacholia and Bengal Finance & Investment Pvt Ltd, Asset Management Arm, with an equal amount of shares to their name at 1.8%.

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. 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 Aeroflex Industries

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 most recent data indicates that insiders own some shares in Aeroflex Industries Limited. As individuals, the insiders collectively own ₹456m worth of the ₹16b company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aeroflex Industries. 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 67% of Aeroflex Industries stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Aeroflex Industries better, we need to consider many other factors.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.