Stock Analysis

Public companies invested in TV18 Broadcast Limited (NSE:TV18BRDCST) copped the brunt of last week's ₹6.8b market cap decline

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Key Insights

  • TV18 Broadcast's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • Reliance Industries Limited owns 60% of the company
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls TV18 Broadcast Limited (NSE:TV18BRDCST), then you'll have to look at the makeup of its share registry. With 60% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies as a group endured the highest losses last week after market cap fell by ₹6.8b.

Let's delve deeper into each type of owner of TV18 Broadcast, beginning with the chart below.

View our latest analysis for TV18 Broadcast

NSEI:TV18BRDCST Ownership Breakdown March 16th 2023

What Does The Institutional Ownership Tell Us About TV18 Broadcast?

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 TV18 Broadcast 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. 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 TV18 Broadcast's earnings history below. Of course, the future is what really matters.

NSEI:TV18BRDCST Earnings and Revenue Growth March 16th 2023

Hedge funds don't have many shares in TV18 Broadcast. Reliance Industries Limited is currently the company's largest shareholder with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. With 3.3% and 1.5% of the shares outstanding respectively, Norges Bank Investment Management and Quant Money Managers Limited) are the second and third largest shareholders.

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. 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 TV18 Broadcast

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

Public companies currently own 60% of TV18 Broadcast stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for TV18 Broadcast that you should be aware of.

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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