Western Carriers (India) Limited's (NSE:WCIL) most bullish insider is Top Key Executive Rajendra Sethia, and their holdings value went up by 13% last week
Key Insights
- Western Carriers (India)'s significant insider ownership suggests inherent interests in company's expansion
- 72% of the company is held by a single shareholder (Rajendra Sethia)
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Western Carriers (India) Limited (NSE:WCIL) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 72% ownership. 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 ₹1.4b last week.
Let's delve deeper into each type of owner of Western Carriers (India), beginning with the chart below.
View our latest analysis for Western Carriers (India)
What Does The Institutional Ownership Tell Us About Western Carriers (India)?
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 Western Carriers (India). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Western Carriers (India)'s earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Western Carriers (India). From our data, we infer that the largest shareholder is Rajendra Sethia (who also holds the title of Top Key Executive) with 72% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. In comparison, the second and third largest shareholders hold about 5.2% and 1.5% of the stock.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Western Carriers (India)
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 information suggests that insiders own more than half of Western Carriers (India) Limited. This gives them effective control of the company. So they have a ₹8.7b stake in this ₹12b 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 20% stake in Western Carriers (India). 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.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Western Carriers (India) you should be aware of.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
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.