Individual investors among Orient Paper & Industries Limited's (NSE:ORIENTPPR) largest shareholders, saw gain in holdings value after stock jumped 11% last week

Key Insights

• The considerable ownership by individual investors in Orient Paper & Industries indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 11 shareholders
• Institutions own 16% of Orient Paper & Industries

To get a sense of who is truly in control of Orient Paper & Industries Limited (NSE:ORIENTPPR), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 42% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors collectively scored the highest last week as the company hit ₹8.2b market cap following a 11% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Orient Paper & Industries.

Check out our latest analysis for Orient Paper & Industries

What Does The Institutional Ownership Tell Us About Orient Paper & Industries?

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 Orient Paper & Industries 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Orient Paper & Industries, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Orient Paper & Industries. The company's largest shareholder is Central India Industries Limited, with ownership of 25%. With 6.2% and 3.7% of the shares outstanding respectively, Shekhavati Investments And Traders Ltd. and HSBC Global Asset Management (UK) Limited are the second and third largest shareholders.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Orient Paper & Industries

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Shareholders would probably be interested to learn that insiders own shares in Orient Paper & Industries Limited. In their own names, insiders own ₹386m worth of stock in the ₹8.2b company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in Orient Paper & Industries. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 37%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Orient Paper & Industries better, we need to consider many other factors. Be aware that Orient Paper & Industries is showing 2 warning signs in our investment analysis , you should know about...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.