Private equity firms among Shree Digvijay Cement Company Limited's (NSE:SHREDIGCEM) largest shareholders, saw gain in holdings value after stock jumped 10% last week

Key Insights

• Significant control over Shree Digvijay Cement by private equity firms implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is True North Managers LLP with a 55% stake
• Insiders have sold recently

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Every investor in Shree Digvijay Cement Company Limited (NSE:SHREDIGCEM) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private equity firms with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private equity firms were the biggest beneficiaries of last week’s 10% gain.

Let's delve deeper into each type of owner of Shree Digvijay Cement, beginning with the chart below.

Check out our latest analysis for Shree Digvijay Cement

What Does The Lack Of Institutional Ownership Tell Us About Shree Digvijay Cement?

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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. 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 Shree Digvijay Cement, for yourself, below.

Shree Digvijay Cement is not owned by hedge funds. True North Managers LLP is currently the largest shareholder, with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 1.5% of the shares outstanding, followed by an ownership of 1.5% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Shree Digvijay Cement

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. 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 some shares in Shree Digvijay Cement Company Limited. As individuals, the insiders collectively own ₹857m worth of the ₹12b company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 38% stake in Shree Digvijay Cement. 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 Equity Ownership

With a stake of 55%, private equity firms could influence the Shree Digvijay Cement board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Shree Digvijay Cement better, we need to consider many other factors. Take risks for example - Shree Digvijay Cement has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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.