Pankaj Bajaj Eldeco Housing and Industries Limited's (NSE:ELDEHSG) CEO is the most bullish insider, and their stock value gained 24%last week

Key Insights

• Insiders appear to have a vested interest in Eldeco Housing and Industries' growth, as seen by their sizeable ownership
• A total of 2 investors have a majority stake in the company with 54% ownership
• Institutional ownership in Eldeco Housing and Industries is 15%

A look at the shareholders of Eldeco Housing and Industries Limited (NSE:ELDEHSG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 54% 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 ₹1.9b last week.

Let's delve deeper into each type of owner of Eldeco Housing and Industries, beginning with the chart below.

Check out our latest analysis for Eldeco Housing and Industries

What Does The Institutional Ownership Tell Us About Eldeco Housing and Industries?

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 Eldeco Housing and Industries. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Eldeco Housing and Industries' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Eldeco Housing and Industries. Looking at our data, we can see that the largest shareholder is the CEO Pankaj Bajaj with 34% of shares outstanding. Bandana Kohli is the second largest shareholder owning 20% of common stock, and Guardian Advisors Pvt. Ltd holds about 7.4% of the company stock.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Eldeco Housing and Industries

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 information suggests that insiders own more than half of Eldeco Housing and Industries Limited. This gives them effective control of the company. Given it has a market cap of ₹9.6b, that means they have ₹5.2b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Eldeco Housing and Industries. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 8.4%, of the Eldeco Housing and Industries 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Eldeco Housing and Industries better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Eldeco Housing and Industries .

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.