BEML Land Assets Limited's (NSE:BLAL) largest shareholders are state or government who were rewarded as market cap surged ₹1.0b last week

Key Insights

• BEML Land Assets' significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 54% of the company is held by a single shareholder (India)
• Institutions own 14% of BEML Land Assets

A look at the shareholders of BEML Land Assets Limited (NSE:BLAL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 54% to be precise, is state or government. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, state or government benefitted the most after the company's market cap rose by ₹1.0b last week.

In the chart below, we zoom in on the different ownership groups of BEML Land Assets.

View our latest analysis for BEML Land Assets

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

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

BEML Land Assets 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. 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.

Hedge funds don't have many shares in BEML Land Assets. Our data shows that India is the largest shareholder with 54% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 7.0% and 2.3% of the stock.

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 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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own less than 1% of BEML Land Assets Limited. 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 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. Be aware that BEML Land Assets is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.