Mishra Dhatu Nigam Limited's (NSE:MIDHANI) biggest owners are state or government who got richer after stock soared 12% last week

Key Insights

• Mishra Dhatu Nigam's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 74% of the company is held by a single shareholder (India)
• 12% of Mishra Dhatu Nigam is held by Institutions

If you want to know who really controls Mishra Dhatu Nigam Limited (NSE:MIDHANI), then you'll have to look at the makeup of its share registry. We can see that state or government own the lion's share in the company with 74% 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 ₹89b market cap following a 12% gain in the stock.

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

View our latest analysis for Mishra Dhatu Nigam

What Does The Institutional Ownership Tell Us About Mishra Dhatu Nigam?

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.

Mishra Dhatu Nigam 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. 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 Mishra Dhatu Nigam'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 Mishra Dhatu Nigam. The company's largest shareholder is India, with ownership of 74%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 7.1% of the shares outstanding, followed by an ownership of 1.6% by the third-largest shareholder.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Mishra Dhatu Nigam

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Mishra Dhatu Nigam. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Mishra Dhatu Nigam .

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.