Retail investors are Bhansali Engineering Polymers Limited's (NSE:BEPL) biggest owners and were rewarded after market cap rose by ₹4.4b last week

Key Insights

• The considerable ownership by retail investors in Bhansali Engineering Polymers indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 7 shareholders
• 27% of Bhansali Engineering Polymers is held by insiders

A look at the shareholders of Bhansali Engineering Polymers Limited (NSE:BEPL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit ₹38b market cap following a 13% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Bhansali Engineering Polymers.

Check out our latest analysis for Bhansali Engineering Polymers

What Does The Institutional Ownership Tell Us About Bhansali Engineering Polymers?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of Bhansali Engineering Polymers is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in Bhansali Engineering Polymers. With a 12% stake, CEO Babulal Bhansali is the largest shareholder. In comparison, the second and third largest shareholders hold about 9.7% and 7.4% of the stock.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Bhansali Engineering Polymers

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.

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 a reasonable proportion of Bhansali Engineering Polymers Limited. Insiders own ₹10b worth of shares in the ₹38b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bhansali Engineering Polymers. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 33%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Bhansali Engineering Polymers better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Bhansali Engineering Polymers .

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. 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.