Here's What Mahindra Lifespace Developers Limited's (NSE:MAHLIFE) Shareholder Ownership Structure Looks Like

A look at the shareholders of Mahindra Lifespace Developers Limited (NSE:MAHLIFE) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

Mahindra Lifespace Developers is a smaller company with a market capitalization of ₹25b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Mahindra Lifespace Developers.

View our latest analysis for Mahindra Lifespace Developers

What Does The Institutional Ownership Tell Us About Mahindra Lifespace Developers?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Mahindra Lifespace Developers. 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 Mahindra Lifespace Developers, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Mahindra Lifespace Developers. Our data shows that Mahindra & Mahindra Limited is the largest shareholder with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. ICICI Prudential Asset Management Company Limited is the second largest shareholder owning 9.4% of common stock, and First Sentier Investors (Australia) IM Ltd holds about 8.8% of the company 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Mahindra Lifespace Developers

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Mahindra Lifespace Developers Limited insiders own under 1% of the company. It appears that the board holds about ₹88m worth of stock. This compares to a market capitalization of ₹25b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 17% ownership, the general public have some degree of sway over Mahindra Lifespace Developers. 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.

Public Company Ownership

It appears to us that public companies own 51% of Mahindra Lifespace Developers. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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 Mahindra Lifespace Developers is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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