What Kind Of Shareholders Own JK Lakshmi Cement Limited (NSE:JKLAKSHMI)?

Every investor in JK Lakshmi Cement Limited (NSE:JKLAKSHMI) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

JK Lakshmi Cement is not a large company by global standards. It has a market capitalization of ₹40b, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about JK Lakshmi Cement.

View our latest analysis for JK Lakshmi Cement

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

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.

JK Lakshmi Cement 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. 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 JK Lakshmi Cement, (below). Of course, keep in mind that there are other factors to consider, too.

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 8.9% and 3.3% of the shares outstanding respectively, Franklin Resources, Inc. and Sachin Bansal are the second and third largest shareholders. Furthermore, CEO Bharat Singhania is the owner of 0.5% of the company's shares.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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. 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 can see that insiders own shares in JK Lakshmi Cement Limited. It has a market capitalization of just ₹40b, and insiders have ₹2.0b worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 14% ownership, the general public 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

Public companies currently own 44% of JK Lakshmi Cement stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Case in point: We've spotted 3 warning signs for JK Lakshmi Cement you should be aware of, and 1 of them can't be ignored.

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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