Individual investors in Vakrangee Limited (NSE:VAKRANGEE) are its biggest bettors, and their bets paid off as stock gained 11% last week

Key Insights

• Significant control over Vakrangee by individual investors implies that the general public has more power to influence management and governance-related decisions
• 53% of the business is held by the top 5 shareholders
• Institutions own 10% of Vakrangee

A look at the shareholders of Vakrangee Limited (NSE:VAKRANGEE) can tell us which group is most powerful. The group holding the most number of shares in the company, around 40% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, individual investors collectively scored the highest last week as the company hit ₹18b market cap following a 11% gain in the stock.

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

Check out our latest analysis for Vakrangee

What Does The Institutional Ownership Tell Us About Vakrangee?

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.

Vakrangee already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Vakrangee's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Vakrangee. Our data shows that Vakrangee Holdings Private Limited is the largest shareholder with 24% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 6.5%, of the shares outstanding, respectively. Dinesh Nandwana, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

On looking further, we found that 53% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 Vakrangee

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 some shares in Vakrangee Limited. In their own names, insiders own ₹1.7b worth of stock in the ₹18b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. 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 40%, of the Vakrangee stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Vakrangee you should be aware of, and 1 of them shouldn't be ignored.

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.