Pondy Oxides And Chemicals Limited's (NSE:POCL) last week's 16% decline must have disappointed individual investors who have a significant stake

Key Insights

• Pondy Oxides And Chemicals' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 51% of the business is held by the top 11 shareholders
• Insiders have been buying lately

If you want to know who really controls Pondy Oxides And Chemicals Limited (NSE:POCL), then you'll have to look at the makeup of its share registry. With 48% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While insiders who own 47% came under pressure after market cap dropped to ₹16b last week,individual investors took the most losses.

Let's delve deeper into each type of owner of Pondy Oxides And Chemicals, beginning with the chart below.

View our latest analysis for Pondy Oxides And Chemicals

What Does The Institutional Ownership Tell Us About Pondy Oxides And Chemicals?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Since institutions own only a small portion of Pondy Oxides And Chemicals, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Pondy Oxides And Chemicals. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Pondy Oxides And Chemicals' case, its Top Key Executive, Anil Bansal, is the largest shareholder, holding 17% of shares outstanding. Ashish Bansal is the second largest shareholder owning 12% of common stock, and Saroj Bansal holds about 9.7% of the company stock. Interestingly, the second-largest shareholder, Ashish Bansal is also Chief Executive Officer, again, pointing towards strong insider ownership amongst the company's top 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 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Pondy Oxides And Chemicals

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

It seems insiders own a significant proportion of Pondy Oxides And Chemicals Limited. Insiders have a ₹7.6b stake in this ₹16b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. 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. Case in point: We've spotted 1 warning sign for Pondy Oxides And Chemicals you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free 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.