Supriya Lifescience Limited's (NSE:SUPRIYA) most bullish insider is Top Key Executive Satish Wagh, and their holdings value went up by 8.0% last week

Key Insights

• Insiders appear to have a vested interest in Supriya Lifescience's growth, as seen by their sizeable ownership
• 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

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A look at the shareholders of Supriya Lifescience Limited (NSE:SUPRIYA) can tell us which group is most powerful. With 68% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by ₹4.8b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Supriya Lifescience.

See 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 can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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. From our data, we infer that the largest shareholder is Satish Wagh (who also holds the title of Top Key Executive) with 68% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. The second and third largest shareholders are Aditya Birla Sun Life AMC Limited and Nippon Life India Asset Management Limited, with an equal amount of shares to their name at 2.1%.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Supriya Lifescience

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems that insiders own more than half the Supriya Lifescience Limited stock. This gives them a lot of power. Given it has a market cap of ₹65b, that means they have ₹44b worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Supriya Lifescience. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Supriya Lifescience , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.