Jeena Sikho Lifecare Limited's (NSE:JSLL) most bullish insider, CEO Manish Grover must be pleased with the recent 8.0% gain

Key Insights

• Jeena Sikho Lifecare's significant insider ownership suggests inherent interests in company's expansion
• 63% of the company is held by a single shareholder (Manish Grover)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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Every investor in Jeena Sikho Lifecare Limited (NSE:JSLL) should be aware of the most powerful shareholder groups. With 64% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by ₹4.3b last week.

Let's delve deeper into each type of owner of Jeena Sikho Lifecare, beginning with the chart below.

See our latest analysis for Jeena Sikho Lifecare

What Does The Lack Of Institutional Ownership Tell Us About Jeena Sikho Lifecare?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Jeena Sikho Lifecare, for yourself, below.

Hedge funds don't have many shares in Jeena Sikho Lifecare. The company's CEO Manish Grover is the largest shareholder with 63% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. Oregano Life Private Limited is the second largest shareholder owning 6.1% of common stock, and Bhavna Grover holds about 0.2% of the company stock. Interestingly, the third-largest shareholder, Bhavna Grover is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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 Jeena Sikho Lifecare

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.

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.

Our information suggests that insiders own more than half of Jeena Sikho Lifecare Limited. This gives them effective control of the company. So they have a ₹37b stake in this ₹59b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Jeena Sikho Lifecare. 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 6.1%, 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. For example, we've discovered 2 warning signs for Jeena Sikho Lifecare (1 is a bit unpleasant!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.