Sarda Energy & Minerals Limited (NSE:SARDAEN) surges 7.3%; private companies who own 51% shares profited along with insiders

Key Insights

• The considerable ownership by private companies in Sarda Energy & Minerals indicates that they collectively have a greater say in management and business strategy
• 53% of the business is held by the top 3 shareholders
• 23% of Sarda Energy & Minerals is held by insiders

A look at the shareholders of Sarda Energy & Minerals Limited (NSE:SARDAEN) can tell us which group is most powerful. With 51% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

While private companies were the group that benefitted the most from last week’s ₹5.7b market cap gain, insiders too had a 23% share in those profits.

Let's delve deeper into each type of owner of Sarda Energy & Minerals, beginning with the chart below.

See our latest analysis for Sarda Energy & Minerals

What Does The Institutional Ownership Tell Us About Sarda Energy & Minerals?

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 Sarda Energy & Minerals, 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. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

Hedge funds don't have many shares in Sarda Energy & Minerals. Chhattisgarh Investments Limited is currently the company's largest shareholder with 39% of shares outstanding. With 7.3% and 6.2% of the shares outstanding respectively, Sarda Agriculture & Properties Pvt Ltd and Uma Sarda are the second and third largest shareholders. In addition, we found that Kamal Sarda, the CEO has 1.7% of the shares allocated to their name.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Sarda Energy & Minerals

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Sarda Energy & Minerals Limited. It is very interesting to see that insiders have a meaningful ₹19b stake in this ₹84b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sarda Energy & Minerals. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 51%, of the Sarda Energy & Minerals stock. 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:

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. Take risks for example - Sarda Energy & Minerals has 1 warning sign we think you should be aware of.

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.