Private companies among Saregama India Limited's (NSE:SAREGAMA) largest shareholders, saw gain in holdings value after stock jumped 9.6% last week

Key Insights

• Significant control over Saregama India by private companies implies that the general public has more power to influence management and governance-related decisions
• Composure Services Private Limited owns 54% of the company
• Institutions own 20% of Saregama India

A look at the shareholders of Saregama India Limited (NSE:SAREGAMA) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, private companies benefitted the most after the company's market cap rose by ₹7.9b last week.

In the chart below, we zoom in on the different ownership groups of Saregama India.

View our latest analysis for Saregama India

What Does The Institutional Ownership Tell Us About Saregama India?

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 Saregama India does have institutional investors; and they hold a good portion of the company's stock. 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 Saregama India, (below). Of course, keep in mind that there are other factors to consider, too.

Saregama India is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Composure Services Private Limited with 54% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Quest Capital Markets Limited, Asset Management Arm is the second largest shareholder owning 4.8% of common stock, and Malabar Investments, LLC holds about 3.4% of the company stock. In addition, we found that Vikram Mehra, the CEO has 1.1% of the shares allocated to their name.

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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Saregama India

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.

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.

We can see that insiders own shares in Saregama India Limited. The insiders have a meaningful stake worth ₹986m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders 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 Saregama India. 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

Our data indicates that Private Companies hold 56%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. To that end, you should be aware of the 1 warning sign we've spotted with Saregama India .

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.