InfoBeans Technologies Limited's (NSE:INFOBEAN) Top Key Executive Avinash Sethi is the most upbeat insider, and their holdings increased by 11% last week

Key Insights

• Significant insider control over InfoBeans Technologies implies vested interests in company growth
• 74% of the business is held by the top 3 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of InfoBeans Technologies Limited (NSE:INFOBEAN), it is important to understand the ownership structure of the business. We can see that individual insiders own the lion's share in the company with 81% 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 ₹1.0b last week.

Let's delve deeper into each type of owner of InfoBeans Technologies, beginning with the chart below.

See our latest analysis for InfoBeans Technologies

What Does The Institutional Ownership Tell Us About InfoBeans Technologies?

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.

Since institutions own only a small portion of InfoBeans Technologies, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

We note that hedge funds don't have a meaningful investment in InfoBeans Technologies. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In InfoBeans Technologies' case, its Top Key Executive, Avinash Sethi, is the largest shareholder, holding 25% of shares outstanding. The second and third largest shareholders are Mitesh Bohra and Siddharth Sethi, with an equal amount of shares to their name at 25%. Note that two of the top three shareholders are also President and Chairman of the Board, respectively, once again pointing to significant ownership by company insiders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 InfoBeans Technologies

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.

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.

It seems that insiders own more than half the InfoBeans Technologies Limited stock. This gives them a lot of power. So they have a ₹8.4b stake in this ₹10b business. 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

The general public, who are usually individual investors, hold a 18% stake in InfoBeans Technologies. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand InfoBeans Technologies better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.