Garware Hi-Tech Films Limited's (NSE:GRWRHITECH) most bullish insider, CEO Shashikant Garware must be pleased with the recent 7.3% gain

Key Insights

• Insiders appear to have a vested interest in Garware Hi-Tech Films' growth, as seen by their sizeable ownership
• A total of 3 investors have a majority stake in the company with 52% ownership
• Institutional ownership in Garware Hi-Tech Films is 11%

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If you want to know who really controls Garware Hi-Tech Films Limited (NSE:GRWRHITECH), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 56% 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 ₹83b market cap following a 7.3% gain in the stock.

Let's delve deeper into each type of owner of Garware Hi-Tech Films, beginning with the chart below.

Check out our latest analysis for Garware Hi-Tech Films

What Does The Institutional Ownership Tell Us About Garware Hi-Tech Films?

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.

Garware Hi-Tech Films 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Garware Hi-Tech Films' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Garware Hi-Tech Films. The company's CEO Shashikant Garware is the largest shareholder with 43% of shares outstanding. With 5.3% and 3.6% of the shares outstanding respectively, B.D.Garware Research Centre and Investor Education and Protection Fund (IEPF) are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.

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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Garware Hi-Tech Films

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.

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.

It seems that insiders own more than half the Garware Hi-Tech Films Limited stock. This gives them a lot of power. Given it has a market cap of ₹83b, that means they have ₹47b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Garware Hi-Tech Films. 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 9.1%, of the Garware Hi-Tech Films stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. For example, we've discovered 1 warning sign for Garware Hi-Tech Films that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.