Public companies among Deepak Fertilisers And Petrochemicals Corporation Limited's (NSE:DEEPAKFERT) largest stockholders and were hit after last week's 5.4% price drop
Key Insights
- The considerable ownership by public companies in Deepak Fertilisers And Petrochemicals indicates that they collectively have a greater say in management and business strategy
- 52% of the business is held by the top 4 shareholders
- Institutions own 26% of Deepak Fertilisers And Petrochemicals
Every investor in Deepak Fertilisers And Petrochemicals Corporation Limited (NSE:DEEPAKFERT) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 35% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And following last week's 5.4% decline in share price, public companies suffered the most losses.
Let's delve deeper into each type of owner of Deepak Fertilisers And Petrochemicals, beginning with the chart below.
View our latest analysis for Deepak Fertilisers And Petrochemicals
What Does The Institutional Ownership Tell Us About Deepak Fertilisers And Petrochemicals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Deepak Fertilisers And Petrochemicals already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Deepak Fertilisers And Petrochemicals, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Deepak Fertilisers And Petrochemicals. Deepak Nitrite Limited is currently the company's largest shareholder with 35% of shares outstanding. Robust Marketing Services Pvt Ltd is the second largest shareholder owning 8.8% of common stock, and SBI Funds Management Limited holds about 5.0% of the company stock.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Deepak Fertilisers And Petrochemicals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 some shares in Deepak Fertilisers And Petrochemicals Corporation Limited. The insiders have a meaningful stake worth ₹3.1b. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 26% stake in Deepak Fertilisers And Petrochemicals. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 10%, of the Deepak Fertilisers And Petrochemicals stock. 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
We can see that public companies hold 35% of the Deepak Fertilisers And Petrochemicals shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Deepak Fertilisers And Petrochemicals , and understanding them should be part of your investment process.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.