Private companies among Bharat Wire Ropes Limited's (NSE:BHARATWIRE) largest shareholders, saw gain in holdings value after stock jumped 12% last week

Key Insights

• The considerable ownership by private companies in Bharat Wire Ropes indicates that they collectively have a greater say in management and business strategy
• 55% of the business is held by the top 3 shareholders
• 18% of Bharat Wire Ropes is held by insiders

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A look at the shareholders of Bharat Wire Ropes Limited (NSE:BHARATWIRE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 33% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, private companies benefitted the most after the company's market cap rose by ₹1.3b last week.

Let's delve deeper into each type of owner of Bharat Wire Ropes, beginning with the chart below.

See our latest analysis for Bharat Wire Ropes

What Does The Institutional Ownership Tell Us About Bharat Wire Ropes?

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.

Bharat Wire Ropes 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 Bharat Wire Ropes' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Bharat Wire Ropes. Gyan Shankar Investment & Trading Co. Pvt Ltd is currently the company's largest shareholder with 32% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 7.6% by the third-largest shareholder.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Bharat Wire Ropes

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.

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 insiders own a significant proportion of Bharat Wire Ropes Limited. Insiders have a ₹2.3b stake in this ₹12b business. 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

The general public-- including retail investors -- own 29% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

It seems that Private Companies own 33%, of the Bharat Wire Ropes stock. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find 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.

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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.