What Type Of Shareholders Own The Most Number of Clariant Chemicals (India) Limited (NSE:CLNINDIA) Shares?

Every investor in Clariant Chemicals (India) Limited (NSE:CLNINDIA) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of ₹9.0b, Clariant Chemicals (India) is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Clariant Chemicals (India).

Check out our latest analysis for Clariant Chemicals (India)

What Does The Institutional Ownership Tell Us About Clariant Chemicals (India)?

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 Clariant Chemicals (India). 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 Clariant Chemicals (India)'s earnings history below. Of course, the future is what really matters.

Clariant Chemicals (India) is not owned by hedge funds. Clariant AG is currently the largest shareholder, with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Bajaj Allianz Life Insurance Company Ltd, Asset Management Arm is the second largest shareholder owning 3.5% of common stock, and SBI Funds Management Private Limited holds about 1.3% of the company stock.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Clariant Chemicals (India)

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.

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 most recent data indicates that insiders own some shares in Clariant Chemicals (India) Limited. In their own names, insiders own ₹354m worth of stock in the ₹9.0b company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 36% stake in the company, will not 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.

Public Company Ownership

Public companies currently own 51% of Clariant Chemicals (India) 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 Clariant Chemicals (India) better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Clariant Chemicals (India) (of which 2 are a bit unpleasant!) you should know about.

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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