Deepak Fertilisers And Petrochemicals Corporation Limited's (NSE:DEEPAKFERT) largest shareholders are public companies who were rewarded as market cap surged ₹12b last week

Key Insights

• The considerable ownership by public companies in Deepak Fertilisers And Petrochemicals indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 50% of the company
• 22% of Deepak Fertilisers And Petrochemicals is held by Institutions

A look at the shareholders of Deepak Fertilisers And Petrochemicals Corporation Limited (NSE:DEEPAKFERT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies collectively scored the highest last week as the company hit ₹154b market cap following a 8.6% gain in the stock.

Let's delve deeper into each type of owner of Deepak Fertilisers And Petrochemicals, beginning with the chart below.

Check out our latest analysis for Deepak Fertilisers And Petrochemicals

What Does The Institutional Ownership Tell Us About Deepak Fertilisers And Petrochemicals?

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 Deepak Fertilisers And Petrochemicals. 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 Deepak Fertilisers And Petrochemicals, (below). Of course, keep in mind that there are other factors to consider, too.

Deepak Fertilisers And Petrochemicals is not owned by hedge funds. Deepak Nitrite Limited is currently the company's largest shareholder with 35% of shares outstanding. For context, the second largest shareholder holds about 8.8% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Deepak Fertilisers And Petrochemicals

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 information suggests that Deepak Fertilisers And Petrochemicals Corporation Limited insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around ₹1.2b worth of shares (at current prices). 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-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 10%, of the Deepak Fertilisers And Petrochemicals 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.

Public Company Ownership

Public companies currently own 35% of Deepak Fertilisers And Petrochemicals 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Deepak Fertilisers And Petrochemicals you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.