Insiders were the key beneficiaries as Genus Power Infrastructures Limited's (NSE:GENUSPOWER) market cap rises to ₹106b

Key Insights

• Significant insider control over Genus Power Infrastructures implies vested interests in company growth
• A total of 5 investors have a majority stake in the company with 52% ownership
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls Genus Power Infrastructures Limited (NSE:GENUSPOWER), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 34% to be precise, is individual insiders. 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 ₹8.9b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Genus Power Infrastructures.

See our latest analysis for Genus Power Infrastructures

What Does The Institutional Ownership Tell Us About Genus Power Infrastructures?

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.

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

Hedge funds don't have many shares in Genus Power Infrastructures. Looking at our data, we can see that the largest shareholder is Hi-Print Electromack Pvt. Ltd with 17% of shares outstanding. Chiswick Investment Pte Ltd is the second largest shareholder owning 17% of common stock, and Vikas Kothari holds about 10.0% of the company stock. Furthermore, CEO Rajendra Agarwal is the owner of 2.0% of the company's shares.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Genus Power Infrastructures

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 insiders own a significant proportion of Genus Power Infrastructures Limited. Insiders own ₹36b worth of shares in the ₹106b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 16% stake in Genus Power Infrastructures. 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

We can see that Private Companies own 24%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Genus Power Infrastructures better, we need to consider many other factors. Take risks for example - Genus Power Infrastructures has 1 warning sign we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.