Institutions profited after JK Lakshmi Cement Limited's (NSE:JKLAKSHMI) market cap rose ₹5.5b last week butpublic companies profited the most

Key Insights

• JK Lakshmi Cement's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 2 shareholders own 51% of the company
• Institutional ownership in JK Lakshmi Cement is 35%

A look at the shareholders of JK Lakshmi Cement Limited (NSE:JKLAKSHMI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While public companies were the group that benefitted the most from last week’s ₹5.5b market cap gain, institutions too had a 35% share in those profits.

Let's delve deeper into each type of owner of JK Lakshmi Cement, beginning with the chart below.

Check out our latest analysis for JK Lakshmi Cement

What Does The Institutional Ownership Tell Us About JK Lakshmi Cement?

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 JK Lakshmi Cement 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. 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 JK Lakshmi Cement's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in JK Lakshmi Cement. Looking at our data, we can see that the largest shareholder is Bengal & Assam Company Limited with 44% of shares outstanding. With 6.2% and 4.5% of the shares outstanding respectively, Axis Asset Management Company Limited and HSBC Global Asset Management (UK) Limited are the second and third largest shareholders.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of JK Lakshmi Cement

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in JK Lakshmi Cement Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around ₹1.7b worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over JK Lakshmi Cement. 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.

Public Company Ownership

We can see that public companies hold 44% of the JK Lakshmi Cement shares on issue. 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 JK Lakshmi Cement better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for JK Lakshmi Cement you should know about.

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.