Shivalik Bimetal Controls Limited's (NSE:SBCL) market cap dropped ₹3.6b last week; individual investors who hold 36% were hit as were institutions

Key Insights

• The considerable ownership by individual investors in Shivalik Bimetal Controls indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 11 shareholders
• Insiders own 22% of Shivalik Bimetal Controls

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To get a sense of who is truly in control of Shivalik Bimetal Controls Limited (NSE:SBCL), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 36% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 24% came under pressure after market cap dropped to ₹23b last week,individual investors took the most losses.

Let's delve deeper into each type of owner of Shivalik Bimetal Controls, beginning with the chart below.

View our latest analysis for Shivalik Bimetal Controls

What Does The Institutional Ownership Tell Us About Shivalik Bimetal Controls?

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 Shivalik Bimetal Controls does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Shivalik Bimetal Controls' earnings history below. Of course, the future is what really matters.

Shivalik Bimetal Controls is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is O D Finance and Investment Pvt. Ltd. with 16% of shares outstanding. With 7.8% and 7.2% of the shares outstanding respectively, Narinder Ghumman and Sumer Ghumman are the second and third largest shareholders. Interestingly, the bottom two of the top three shareholders also hold the title of Top Key Executive and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Shivalik Bimetal Controls

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 most recent data indicates that insiders own a reasonable proportion of Shivalik Bimetal Controls Limited. It has a market capitalization of just ₹23b, and insiders have ₹5.2b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 36% stake in Shivalik Bimetal Controls. 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 17%, 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 Shivalik Bimetal Controls better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Shivalik Bimetal Controls , 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.