BEML Land Assets Limited's (NSE:BLAL) biggest owners are state or government who got richer after stock soared 12% last week

Key Insights

• The considerable ownership by state or government in BEML Land Assets indicates that they collectively have a greater say in management and business strategy
• India owns 54% of the company
• Institutional ownership in BEML Land Assets is 14%

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A look at the shareholders of BEML Land Assets Limited (NSE:BLAL) can tell us which group is most powerful. We can see that state or government own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, state or government collectively scored the highest last week as the company hit ₹9.6b market cap following a 12% gain in the stock.

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

View our latest analysis for BEML Land Assets

What Does The Institutional Ownership Tell Us About BEML Land Assets?

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 BEML Land Assets. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of BEML Land Assets, (below). Of course, keep in mind that there are other factors to consider, too.

BEML Land Assets is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is India with 54% of shares outstanding. This implies that they have majority interest control of the future of the company. With 7.0% and 2.3% of the shares outstanding respectively, HDFC Asset Management Company Limited and Kotak Mahindra Asset Management Company Limited are the second and third largest shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 BEML Land Assets

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that BEML Land Assets Limited insiders own under 1% of the company. It has a market capitalization of just ₹9.6b, and the board has only ₹83m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 30% 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:

It's always worth thinking about the different groups who own shares in a company. But to understand BEML Land Assets better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for BEML Land Assets you should know about.

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.

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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.