After the recent decline, Supriya Lifescience Limited (NSE:SUPRIYA) Top Key Executive Satish Wagh's holdings have lost 10% of their value

Key Insights

• Supriya Lifescience's significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Satish Wagh with a 68% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

We've discovered 1 warning sign about Supriya Lifescience. View them for free.

To get a sense of who is truly in control of Supriya Lifescience Limited (NSE:SUPRIYA), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 68% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 10%.

In the chart below, we zoom in on the different ownership groups of Supriya Lifescience.

View our latest analysis for Supriya Lifescience

What Does The Institutional Ownership Tell Us About Supriya Lifescience?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Supriya Lifescience. 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. 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 Supriya Lifescience's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Supriya Lifescience. Our data suggests that Satish Wagh, who is also the company's Top Key Executive, holds the most number of shares at 68%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. With 2.3% and 2.1% of the shares outstanding respectively, Aditya Birla Sun Life AMC Limited and Nippon Life India Asset Management Limited are the second and third largest 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Supriya Lifescience

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems that insiders own more than half the Supriya Lifescience Limited stock. This gives them a lot of power. So they have a ₹35b stake in this ₹52b 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-- including retail investors -- own 25% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

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 1 warning sign for Supriya Lifescience 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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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.