Sahasra Electronic Solutions Limited's (NSE:SAHASRA) CEO Amrit Manwani is the most upbeat insider, and their holdings increased by 16% last week

Key Insights

• Significant insider control over Sahasra Electronic Solutions implies vested interests in company growth
• The largest shareholder of the company is Amrit Manwani with a 70% stake
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Sahasra Electronic Solutions Limited (NSE:SAHASRA) can tell us which group is most powerful. With 70% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 16% gain.

In the chart below, we zoom in on the different ownership groups of Sahasra Electronic Solutions.

See our latest analysis for Sahasra Electronic Solutions

What Does The Lack Of Institutional Ownership Tell Us About Sahasra Electronic Solutions?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Sahasra Electronic Solutions' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Sahasra Electronic Solutions is not owned by hedge funds. The company's CEO Amrit Manwani is the largest shareholder with 70% of shares outstanding. 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. The second and third largest shareholders are Arunima Manwani and Varun Manwani, with an equal amount of shares to their name at 0.005%. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Sahasra Electronic Solutions

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 most recent data indicates that insiders own the majority of Sahasra Electronic Solutions Limited. This means they can collectively make decisions for the company. So they have a ₹6.2b stake in this ₹8.8b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Sahasra Electronic Solutions. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Sahasra Electronic Solutions has 4 warning signs (and 3 which are concerning) we think you should know about.

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.