Following recent decline, Bliss GVS Pharma Limited's (NSE:BLISSGVS) top shareholder CEO Shibroor Kamath sees holdings value drop by 11%

Key Insights

• Significant insider control over Bliss GVS Pharma implies vested interests in company growth
• A total of 5 investors have a majority stake in the company with 54% ownership
• 11% of Bliss GVS Pharma is held by Institutions

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Every investor in Bliss GVS Pharma Limited (NSE:BLISSGVS) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 44% ownership. 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, insiders as a group endured the highest losses after market cap fell by ₹2.0b.

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

View our latest analysis for Bliss GVS Pharma

What Does The Institutional Ownership Tell Us About Bliss GVS Pharma?

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 Bliss GVS Pharma. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bliss GVS Pharma's historic earnings and revenue below, but keep in mind there's always more to the story.

Bliss GVS Pharma is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Shibroor Kamath with 31% of shares outstanding. Arian Investment Limited is the second largest shareholder owning 7.4% of common stock, and Life Insurance Corporation of India holds about 6.0% of the company stock.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Bliss GVS 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.

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 maintain a significant holding in Bliss GVS Pharma Limited. Insiders have a ₹7.2b stake in this ₹16b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bliss GVS 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.

Private Company Ownership

We can see that Private Companies own 14%, of the shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Bliss GVS Pharma better, we need to consider many other factors. Be aware that Bliss GVS Pharma is showing 2 warning signs in our investment analysis , you should know about...

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.