Insiders with their considerable ownership were the key benefactors as Anuh Pharma Limited (NSE:ANUHPHR) touches ₹9.1b market cap

Key Insights

• Anuh Pharma's significant insider ownership suggests inherent interests in company's expansion
• 56% of the business is held by the top 4 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Our free stock report includes 2 warning signs investors should be aware of before investing in Anuh Pharma. Read for free now.

A look at the shareholders of Anuh Pharma Limited (NSE:ANUHPHR) can tell us which group is most powerful. With 78% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

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

In the chart below, we zoom in on the different ownership groups of Anuh Pharma.

Check out our latest analysis for Anuh Pharma

What Does The Lack Of Institutional Ownership Tell Us About Anuh Pharma?

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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Anuh Pharma might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Anuh Pharma is not owned by hedge funds. Bharti Shah is currently the largest shareholder, with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 14% of the stock. Bipin Shah, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. In addition, we found that Ritesh Shah, the CEO has 2.3% of the shares allocated to their name.

Our research also brought to light the fact that roughly 56% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Anuh Pharma

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own the majority of Anuh Pharma Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹9.1b, that means they have ₹7.0b worth of shares. 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 Anuh Pharma. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Anuh Pharma better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Anuh Pharma you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.