Stock Analysis

Private companies among Jubilant Pharmova Limited's (NSE:JUBLPHARMA) largest stockholders and were hit after last week's 9.3% price drop

Source: Shutterstock

Key Insights

  • Significant control over Jubilant Pharmova by private companies implies that the general public has more power to influence management and governance-related decisions
  • The top 4 shareholders own 54% of the company
  • Institutional ownership in Jubilant Pharmova is 11%

To get a sense of who is truly in control of Jubilant Pharmova Limited (NSE:JUBLPHARMA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 50% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 9.3% decline in share price, private companies suffered the most losses.

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

Check out our latest analysis for Jubilant Pharmova

NSEI:JUBLPHARMA Ownership Breakdown March 17th 2023

What Does The Institutional Ownership Tell Us About Jubilant Pharmova?

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.

Jubilant Pharmova already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Jubilant Pharmova's earnings history below. Of course, the future is what really matters.

NSEI:JUBLPHARMA Earnings and Revenue Growth March 17th 2023

Our data indicates that hedge funds own 7.5% of Jubilant Pharmova. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Shyam Sunder Bhartia Family Trust is currently the largest shareholder, with 21% of shares outstanding. Shanker Bhartia Family Trust Private Limited is the second largest shareholder owning 19% of common stock, and East Bridge Capital Management Lp holds about 7.5% of the company stock.

Our research also brought to light the fact that roughly 54% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Jubilant Pharmova

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.

We can see that insiders own shares in Jubilant Pharmova Limited. It has a market capitalization of just ₹44b, and insiders have ₹3.5b worth of shares, in their own names. This shows at least some alignment. 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 23% stake in Jubilant Pharmova. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 50%, of the Jubilant Pharmova stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Jubilant Pharmova better, we need to consider many other factors. For example, we've discovered 4 warning signs for Jubilant Pharmova (1 is a bit unpleasant!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Jubilant Pharmova is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis