Stallion India Fluorochemicals Limited's (NSE:STALLION) most bullish insider, CEO Shazad Rustomji must be pleased with the recent 30% gain

Key Insights

• Stallion India Fluorochemicals' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Shazad Rustomji with a 68% stake
• 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 Stallion India Fluorochemicals Limited (NSE:STALLION) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 72% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 30% gain.

Let's delve deeper into each type of owner of Stallion India Fluorochemicals, beginning with the chart below.

See our latest analysis for Stallion India Fluorochemicals

What Does The Institutional Ownership Tell Us About Stallion India Fluorochemicals?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Stallion India Fluorochemicals 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 Stallion India Fluorochemicals' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Stallion India Fluorochemicals. Looking at our data, we can see that the largest shareholder is the CEO Shazad Rustomji with 68% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. With 5.0% and 4.2% of the shares outstanding respectively, Neomile Corporate Advisory, LTD and Geetu Yadav are the second and third largest shareholders. Interestingly, the third-largest shareholder, Geetu Yadav is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Stallion India Fluorochemicals

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders own more than half of Stallion India Fluorochemicals Limited. This gives them effective control of the company. That means they own ₹15b worth of shares in the ₹21b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Stallion India Fluorochemicals. 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.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Stallion India Fluorochemicals , and understanding them should be part of your investment process.

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.