Shree Vasu Logistics Limited's (NSE:SVLL) 12% gain last week benefited both individual investors who own 58% as well as insiders

Key Insights

• Significant control over Shree Vasu Logistics by individual investors implies that the general public has more power to influence management and governance-related decisions
• 42% of the business is held by the top 2 shareholders
• 42% of Shree Vasu Logistics is held by insiders

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Every investor in Shree Vasu Logistics Limited (NSE:SVLL) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 12% increase in the stock price last week, individual investors profited the most, but insiders who own 42% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of Shree Vasu Logistics.

Check out our latest analysis for Shree Vasu Logistics

What Does The Lack Of Institutional Ownership Tell Us About Shree Vasu Logistics?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. Shree Vasu Logistics' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

We note that hedge funds don't have a meaningful investment in Shree Vasu Logistics. The company's largest shareholder is Atul Garg, with ownership of 42%. Meanwhile, the second largest shareholder is Top Key Executive Shree Garg and holds 0.5% of the shares outstanding.

Our studies suggest that the top 2 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. 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 Shree Vasu Logistics

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Shree Vasu Logistics Limited. Insiders have a ₹3.8b stake in this ₹9.1b business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public -- including retail investors -- own 58% of Shree Vasu Logistics. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 3 warning signs for Shree Vasu Logistics (2 are a bit unpleasant!) that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.