Institutions profited after National Aluminium Company Limited's (NSE:NATIONALUM) market cap rose ₹18b last week but state or government profited the most

Key Insights

• Significant control over National Aluminium by state or government implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is India with a 51% stake
• Institutions own 26% of National Aluminium

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If you want to know who really controls National Aluminium Company Limited (NSE:NATIONALUM), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 51% to be precise, is state or government. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 5.2% increase in the stock price last week, state or government profited the most, but institutions who own 26% stock also stood to gain from the increase.

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

View our latest analysis for National Aluminium

What Does The Institutional Ownership Tell Us About National Aluminium?

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 National Aluminium does have institutional investors; and they hold a good portion of the company's stock. 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. 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 National Aluminium's earnings history below. Of course, the future is what really matters.

National Aluminium is not owned by hedge funds. Our data shows that India is the largest shareholder with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Life Insurance Corporation of India, Asset Management Arm is the second largest shareholder owning 4.0% of common stock, and ICICI Prudential Asset Management Company Limited holds about 3.7% of the company stock.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of National Aluminium

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. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over National Aluminium. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with National Aluminium (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

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.