MOIL Limited's (NSE:MOIL) biggest owners are state or government who got richer after stock soared 11% last week

Key Insights

• MOIL's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• Ministry of Steel Government of India owns 53% of the company
• 14% of MOIL is held by Institutions

Every investor in MOIL Limited (NSE:MOIL) should be aware of the most powerful shareholder groups. We can see that state or government own the lion's share in the company with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, state or government benefitted the most after the company's market cap rose by ₹6.7b last week.

In the chart below, we zoom in on the different ownership groups of MOIL.

Check out our latest analysis for MOIL

What Does The Institutional Ownership Tell Us About MOIL?

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.

As you can see, institutional investors have a fair amount of stake in MOIL. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 MOIL's historic earnings and revenue below, but keep in mind there's always more to the story.

MOIL is not owned by hedge funds. The company's largest shareholder is Ministry of Steel Government of India, with ownership of 53%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 6.0% of the shares outstanding, followed by an ownership of 5.4% by the third-largest shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of MOIL

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.

We note our data does not show any board members 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

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over MOIL. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for MOIL 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.