Texmaco Infrastructure & Holdings Limited's (NSE:TEXINFRA) market cap surged ₹1.3b last week, public companies who have a lot riding on the company were rewarded

Key Insights

• Texmaco Infrastructure & Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 55% ownership
• 13% of Texmaco Infrastructure & Holdings is held by insiders

We've discovered 1 warning sign about Texmaco Infrastructure & Holdings. View them for free.

To get a sense of who is truly in control of Texmaco Infrastructure & Holdings Limited (NSE:TEXINFRA), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 32% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, public companies benefitted the most after the company's market cap rose by ₹1.3b last week.

In the chart below, we zoom in on the different ownership groups of Texmaco Infrastructure & Holdings.

Check out our latest analysis for Texmaco Infrastructure & Holdings

What Does The Institutional Ownership Tell Us About Texmaco Infrastructure & Holdings?

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.

Texmaco Infrastructure & Holdings 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Texmaco Infrastructure & Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Texmaco Infrastructure & Holdings. Zuari Industries Limited is currently the largest shareholder, with 31% of shares outstanding. Adventz Finance Private Limited is the second largest shareholder owning 17% of common stock, and Duke Commerce Limited holds about 6.6% of the company stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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

Insider Ownership Of Texmaco Infrastructure & Holdings

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.

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 most recent data indicates that insiders own a reasonable proportion of Texmaco Infrastructure & Holdings Limited. It has a market capitalization of just ₹13b, and insiders have ₹1.7b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Texmaco Infrastructure & Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 29%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 32% of the Texmaco Infrastructure & Holdings shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Texmaco Infrastructure & Holdings better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Texmaco Infrastructure & Holdings you should be aware of.

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.