Public companies account for 69% of LTIMindtree Limited's (NSE:LTIM) ownership, while institutions account for 18%

Key Insights

• The considerable ownership by public companies in LTIMindtree indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Larsen & Toubro Limited with a 69% stake
• Institutional ownership in LTIMindtree is 18%

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If you want to know who really controls LTIMindtree Limited (NSE:LTIM), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 69% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutions on the other hand have a 18% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

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

Check out our latest analysis for LTIMindtree

What Does The Institutional Ownership Tell Us About LTIMindtree?

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.

LTIMindtree 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 LTIMindtree's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in LTIMindtree. Our data shows that Larsen & Toubro Limited is the largest shareholder with 69% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 9.0% and 1.3%, of the shares outstanding, respectively.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of LTIMindtree

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of LTIMindtree Limited in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₹4.8b of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 69% of the LTIMindtree shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand LTIMindtree better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for LTIMindtree you should know about.

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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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.