Public companies in Vindhya Telelinks Limited (NSE:VINDHYATEL) are its biggest bettors, and their bets paid off as stock gained 13% last week

Key Insights

• The considerable ownership by public companies in Vindhya Telelinks indicates that they collectively have a greater say in management and business strategy
• The top 4 shareholders own 58% of the company
• Institutions own 13% of Vindhya Telelinks

A look at the shareholders of Vindhya Telelinks Limited (NSE:VINDHYATEL) can tell us which group is most powerful. With 29% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, public companies benefitted the most after the company's market cap rose by ₹3.0b last week.

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

Check out our latest analysis for Vindhya Telelinks

What Does The Institutional Ownership Tell Us About Vindhya Telelinks?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

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

Hedge funds don't have many shares in Vindhya Telelinks. Looking at our data, we can see that the largest shareholder is Universal Cables Limited with 29% of shares outstanding. With 11% and 9.8% of the shares outstanding respectively, The Punjab Produce & Trading Co. Pvt. Ltd. and Belle Vue Clinic are the second and third largest shareholders.

On looking further, we found that 58% of the shares are owned by the top 4 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Vindhya Telelinks

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.

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 some shares in Vindhya Telelinks Limited. In their own names, insiders own ₹1.2b worth of stock in the ₹27b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Vindhya Telelinks. 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 27%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

It appears to us that public companies own 29% of Vindhya Telelinks. 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 Vindhya Telelinks better, we need to consider many other factors. For example, we've discovered 2 warning signs for Vindhya Telelinks (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free 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.