Gujarat State Fertilizers & Chemicals Limited's (NSE:GSFC) largest shareholders are retail investors who were rewarded as market cap surged ₹6.9b last week

Key Insights

• Gujarat State Fertilizers & Chemicals' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 7 investors have a majority stake in the company with 50% ownership
• Institutions own 17% of Gujarat State Fertilizers & Chemicals

Our free stock report includes 1 warning sign investors should be aware of before investing in Gujarat State Fertilizers & Chemicals. Read for free now.

A look at the shareholders of Gujarat State Fertilizers & Chemicals Limited (NSE:GSFC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 38% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, retail investors collectively scored the highest last week as the company hit ₹77b market cap following a 9.9% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Gujarat State Fertilizers & Chemicals.

Check out our latest analysis for Gujarat State Fertilizers & Chemicals

What Does The Institutional Ownership Tell Us About Gujarat State Fertilizers & Chemicals?

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.

We can see that Gujarat State Fertilizers & Chemicals does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Gujarat State Fertilizers & Chemicals' earnings history below. Of course, the future is what really matters.

Gujarat State Fertilizers & Chemicals is not owned by hedge funds. Gujarat State Investments Limited is currently the largest shareholder, with 38% of shares outstanding. With 2.7% and 2.5% of the shares outstanding respectively, FMR LLC and quant Money Managers Ltd. are the second and third largest shareholders.

We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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

Insider Ownership Of Gujarat State Fertilizers & Chemicals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Gujarat State Fertilizers & Chemicals. 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

We can see that Private Companies own 38%, of the shares on issue. 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 5.0% of Gujarat State Fertilizers & Chemicals 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 Gujarat State Fertilizers & Chemicals better, we need to consider many other factors. For instance, we've identified 1 warning sign for Gujarat State Fertilizers & Chemicals that you should be aware of.

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.