Private companies in Time Technoplast Limited (NSE:TIMETECHNO) are its biggest bettors, and their bets paid off as stock gained 6.2% last week

Key Insights

• The considerable ownership by private companies in Time Technoplast indicates that they collectively have a greater say in management and business strategy
• 51% of the business is held by the top 5 shareholders
• 17% of Time Technoplast is held by Institutions

We've discovered 1 warning sign about Time Technoplast. View them for free.

To get a sense of who is truly in control of Time Technoplast Limited (NSE:TIMETECHNO), it is important to understand the ownership structure of the business. With 45% stake, private companies possess the maximum shares in the company. 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 companies collectively scored the highest last week as the company hit ₹79b market cap following a 6.2% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Time Technoplast.

See our latest analysis for Time Technoplast

What Does The Institutional Ownership Tell Us About Time Technoplast?

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.

As you can see, institutional investors have a fair amount of stake in Time Technoplast. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Time Technoplast, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Time Technoplast. Time Securities Services PVT Limited is currently the largest shareholder, with 19% of shares outstanding. With 15% and 9.8% of the shares outstanding respectively, Vishwalaxmi Trading & Finance Pvt. Ltd. and Time Exports Pvt. Ltd. are the second and third largest shareholders. In addition, we found that Bharat Vageria, the CEO has 2.0% of the shares allocated to their name.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Time Technoplast

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.

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.

We can report that insiders do own shares in Time Technoplast Limited. It has a market capitalization of just ₹79b, and insiders have ₹7.0b worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 29% stake in the company, and hence can't easily be ignored. 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

It seems that Private Companies own 45%, of the Time Technoplast 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Time Technoplast better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Time Technoplast you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.