Brigade Enterprises Limited's (NSE:BRIGADE): Top Key Executive Mysore Jaishankar is the most bullish insider, and their stock value gained 3.1% last week

Key Insights

• Significant insider control over Brigade Enterprises implies vested interests in company growth
• A total of 9 investors have a majority stake in the company with 50% ownership
• Institutional ownership in Brigade Enterprises is 34%

A look at the shareholders of Brigade Enterprises Limited (NSE:BRIGADE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 47% ownership. 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 ₹10b last week.

In the chart below, we zoom in on the different ownership groups of Brigade Enterprises.

See our latest analysis for Brigade Enterprises

What Does The Institutional Ownership Tell Us About Brigade Enterprises?

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 Brigade Enterprises. 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 Brigade Enterprises, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Brigade Enterprises. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Brigade Enterprises' case, its Top Key Executive, Mysore Jaishankar, is the largest shareholder, holding 14% of shares outstanding. With 11% and 6.6% of the shares outstanding respectively, Githa Shankar and Nirupa Shankar are the second and third largest shareholders. Interestingly, the third-largest shareholder, Nirupa Shankar is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders. Furthermore, CEO Pavitra Shankar is the owner of 0.8% of the company's shares.

We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Brigade Enterprises

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. 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.

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 a reasonable proportion of Brigade Enterprises Limited. It has a market capitalization of just ₹332b, and insiders have ₹158b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Brigade Enterprises. 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 Brigade Enterprises better, we need to consider many other factors. Be aware that Brigade Enterprises is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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.