State or government in Hindustan Copper Limited (NSE:HINDCOPPER) are its biggest bettors, and their bets paid off as stock gained 4.1% last week

Key Insights

• Hindustan Copper's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• The Republic of India owns 66% of the company
• Institutions own 10% of Hindustan Copper

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A look at the shareholders of Hindustan Copper Limited (NSE:HINDCOPPER) can tell us which group is most powerful. We can see that state or government own the lion's share in the company with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, state or government collectively scored the highest last week as the company hit ₹316b market cap following a 4.1% gain in the stock.

Let's delve deeper into each type of owner of Hindustan Copper, beginning with the chart below.

Check out our latest analysis for Hindustan Copper

What Does The Institutional Ownership Tell Us About Hindustan Copper?

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.

As you can see, institutional investors have a fair amount of stake in Hindustan Copper. 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. 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 Hindustan Copper's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Hindustan Copper. Looking at our data, we can see that the largest shareholder is The Republic of India with 66% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 4.7% and 2.4% of the shares outstanding respectively, Life Insurance Corporation of India and quant Money Managers Ltd. are the second and third largest shareholders.

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 Hindustan Copper

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hindustan Copper. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 2 warning signs for Hindustan Copper that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.