Raghav Productivity Enhancers Limited's (NSE:RPEL) most bullish insider is CEO Rajesh Kabra, and their holdings value went up by 15% last week

Key Insights

• Significant insider control over Raghav Productivity Enhancers implies vested interests in company growth
• 63% of the business is held by the top 2 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Raghav Productivity Enhancers Limited (NSE:RPEL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 78% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by ₹3.7b last week.

Let's delve deeper into each type of owner of Raghav Productivity Enhancers, beginning with the chart below.

See our latest analysis for Raghav Productivity Enhancers

What Does The Lack Of Institutional Ownership Tell Us About Raghav Productivity Enhancers?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Raghav Productivity Enhancers, for yourself, below.

Raghav Productivity Enhancers is not owned by hedge funds. The company's CEO Rajesh Kabra is the largest shareholder with 33% of shares outstanding. Sanjay Kabra is the second largest shareholder owning 30% of common stock, and Rekha Jhunjhunwala holds about 4.8% of the company stock. Interestingly, the second-largest shareholder, Sanjay Kabra is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.

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. 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 Raghav Productivity Enhancers

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own the majority of Raghav Productivity Enhancers Limited. This means they can collectively make decisions for the company. So they have a ₹22b stake in this ₹28b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Raghav Productivity Enhancers. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 3.3%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Raghav Productivity Enhancers better, we need to consider many other factors. Take risks for example - Raghav Productivity Enhancers has 1 warning sign we think you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.