What You Need To Know About Maithan Alloys Limited's (NSE:MAITHANALL) Investor Composition

A look at the shareholders of Maithan Alloys Limited (NSE:MAITHANALL) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Maithan Alloys is a smaller company with a market capitalization of ₹17b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Maithan Alloys.

See our latest analysis for Maithan Alloys

What Does The Institutional Ownership Tell Us About Maithan Alloys?

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.

We can see that Maithan Alloys does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Maithan Alloys' earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Maithan Alloys. Our data shows that Bhagwati Syndicate Private Limited, Asset Management Arm is the largest shareholder with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. Subhas Agarwalla is the second largest shareholder owning 4.8% of common stock, and Sheela Agarwalla holds about 4.2% of the company stock. Subhas Agarwalla, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. In addition, we found that Subodh Agarwalla, the CEO has 1.4% of the shares allocated to his name

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Maithan Alloys

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Maithan Alloys Limited. Insiders own ₹3.5b worth of shares in the ₹17b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, with a 20% stake in the company, will not easily be ignored. 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.

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. Be aware that Maithan Alloys is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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