Suresh Poddar Mayur Uniquoters Limited's (NSE:MAYURUNIQ) CEO is the most bullish insider, and their stock value gained 18%last week

Key Insights

• Significant insider control over Mayur Uniquoters implies vested interests in company growth
• The top 2 shareholders own 58% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

We've discovered 1 warning sign about Mayur Uniquoters. View them for free.

A look at the shareholders of Mayur Uniquoters Limited (NSE:MAYURUNIQ) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₹3.6b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Mayur Uniquoters.

View our latest analysis for Mayur Uniquoters

What Does The Institutional Ownership Tell Us About Mayur Uniquoters?

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.

Mayur Uniquoters already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Mayur Uniquoters' earnings history below. Of course, the future is what really matters.

Mayur Uniquoters is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Suresh Poddar with 42% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 1.9%, of the shares outstanding, respectively.

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.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mayur Uniquoters

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. 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.

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.

Our information suggests that insiders own more than half of Mayur Uniquoters Limited. This gives them effective control of the company. Given it has a market cap of ₹23b, that means they have ₹13b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mayur Uniquoters. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Mayur Uniquoters has 1 warning sign we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.