Bharata Grandhi Manoj Vaibhav Gems 'N' Jewellers Limited's (NSE:MVGJL) CEO is the most bullish insider, and their stock value gained 11%last week

Key Insights

• Significant insider control over Manoj Vaibhav Gems 'N' Jewellers implies vested interests in company growth
• Bharata Grandhi owns 65% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls Manoj Vaibhav Gems 'N' Jewellers Limited (NSE:MVGJL), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit ₹12b market cap following a 11% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Manoj Vaibhav Gems 'N' Jewellers.

See our latest analysis for Manoj Vaibhav Gems 'N' Jewellers

What Does The Institutional Ownership Tell Us About Manoj Vaibhav Gems 'N' Jewellers?

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 Manoj Vaibhav Gems 'N' Jewellers. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Manoj Vaibhav Gems 'N' Jewellers, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Manoj Vaibhav Gems 'N' Jewellers. With a 65% stake, CEO Bharata Grandhi is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. In comparison, the second and third largest shareholders hold about 8.7% and 1.6% 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Manoj Vaibhav Gems 'N' Jewellers

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.

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 the majority of Manoj Vaibhav Gems 'N' Jewellers Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹12b, that means they have ₹7.9b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Manoj Vaibhav Gems 'N' Jewellers. 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.

Private Company Ownership

It seems that Private Companies own 13%, of the Manoj Vaibhav Gems 'N' Jewellers 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 Manoj Vaibhav Gems 'N' Jewellers better, we need to consider many other factors. For example, we've discovered 1 warning sign for Manoj Vaibhav Gems 'N' Jewellers that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.