Stock Analysis

Insiders were the biggest winners as Themis Medicare Limited's (NSE:THEMISMED) market cap grew by ₹2.6b last week

NSEI:THEMISMED
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Key Insights

  • Significant insider control over Themis Medicare implies vested interests in company growth
  • A total of 5 investors have a majority stake in the company with 51% ownership
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Themis Medicare Limited (NSE:THEMISMED) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 39% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 15% gain.

In the chart below, we zoom in on the different ownership groups of Themis Medicare.

See our latest analysis for Themis Medicare

ownership-breakdown
NSEI:THEMISMED Ownership Breakdown June 12th 2024

What Does The Institutional Ownership Tell Us About Themis Medicare?

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.

Institutions have a very small stake in Themis Medicare. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

earnings-and-revenue-growth
NSEI:THEMISMED Earnings and Revenue Growth June 12th 2024

We note that hedge funds don't have a meaningful investment in Themis Medicare. Looking at our data, we can see that the largest shareholder is Vividhmargi Investment Pvt. Ltd. with 16% of shares outstanding. Dinesh Patel is the second largest shareholder owning 11% of common stock, and Gedeon Richter Investments Management Ltd holds about 9.6% of the company stock. Dinesh Patel, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Sachin Patel directly holds 6.0% of the total shares outstanding.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. 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 Themis Medicare

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.

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.

Our information suggests that insiders maintain a significant holding in Themis Medicare Limited. Insiders have a ₹7.8b stake in this ₹20b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. 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 20% stake in Themis Medicare. 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.

Private Company Ownership

It seems that Private Companies own 38%, of the Themis Medicare stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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 here to simplify it.

Discover if Themis Medicare might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About NSEI:THEMISMED

Themis Medicare

Manufactures and sells pharmaceutical products in India and internationally.

Flawless balance sheet with questionable track record.

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