Ipca Laboratories Limited's (NSE:IPCALAB) largest shareholders are private companies with 38% ownership, institutions own 35%

By
Simply Wall St
Published
April 14, 2022
NSEI:IPCALAB
Source: Shutterstock

A look at the shareholders of Ipca Laboratories Limited (NSE:IPCALAB) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 38% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 35% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

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

View our latest analysis for Ipca Laboratories

ownership-breakdown
NSEI:IPCALAB Ownership Breakdown April 14th 2022

What Does The Institutional Ownership Tell Us About Ipca Laboratories?

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 Ipca Laboratories. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Ipca Laboratories, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NSEI:IPCALAB Earnings and Revenue Growth April 14th 2022

We note that hedge funds don't have a meaningful investment in Ipca Laboratories. Kaygee Investments Pvt. Ltd. is currently the company's largest shareholder with 21% of shares outstanding. Kaygee Laboratories Private Limited is the second largest shareholder owning 6.6% of common stock, and Chandurkar Investments Pvt. Ltd. holds about 5.5% of the company stock. Additionally, the company's CEO Premchand Godha directly holds 2.3% of the total shares outstanding.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Ipca Laboratories

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 report that insiders do own shares in Ipca Laboratories Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around ₹23b worth of shares (at current prices). 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

The general public-- including retail investors -- own 18% 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

Our data indicates that Private Companies hold 38%, 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Ipca Laboratories that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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