The recent 3.0% gain must have brightened CEO Bajrang Agrawal's week, Godawari Power & Ispat Limited's (NSE:GPIL) most bullish insider

Key Insights

• Insiders appear to have a vested interest in Godawari Power & Ispat's growth, as seen by their sizeable ownership
• The top 11 shareholders own 52% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Godawari Power & Ispat Limited (NSE:GPIL) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₹166b market cap following a 3.0% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Godawari Power & Ispat.

View our latest analysis for Godawari Power & Ispat

What Does The Institutional Ownership Tell Us About Godawari Power & Ispat?

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.

We can see that Godawari Power & Ispat does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Godawari Power & Ispat, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Godawari Power & Ispat. Looking at our data, we can see that the largest shareholder is the CEO Bajrang Agrawal with 8.5% of shares outstanding. Dinesh Agrawal is the second largest shareholder owning 6.4% of common stock, and Vinay Agrawal holds about 5.9% of the company stock. Interestingly, the second-largest shareholder, Dinesh Agrawal is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Godawari Power & Ispat

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 information suggests that insiders own more than half of Godawari Power & Ispat Limited. This gives them effective control of the company. Given it has a market cap of ₹166b, that means insiders have a whopping ₹85b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 26% 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 16%, of the Godawari Power & Ispat 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Godawari Power & Ispat better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Godawari Power & Ispat , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.