The recent pullback must have dismayed Kaynes Technology India Limited (NSE:KAYNES) insiders who own 55% of the company
Key Insights
- Insiders appear to have a vested interest in Kaynes Technology India's growth, as seen by their sizeable ownership
- Ramesh Kunhikannan owns 53% of the company
- 29% of Kaynes Technology India is held by Institutions
If you want to know who really controls Kaynes Technology India Limited (NSE:KAYNES), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, insiders endured the biggest losses as the stock fell by 5.0%.
Let's delve deeper into each type of owner of Kaynes Technology India, beginning with the chart below.
Check out our latest analysis for Kaynes Technology India
What Does The Institutional Ownership Tell Us About Kaynes Technology 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.
We can see that Kaynes Technology India does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kaynes Technology India's historic earnings and revenue below, but keep in mind there's always more to the story.
Kaynes Technology India is not owned by hedge funds. The company's largest shareholder is Ramesh Kunhikannan, with ownership of 53%. This implies that they have majority interest control of the future of the company. With 4.2% and 2.8% of the shares outstanding respectively, Motilal Oswal Asset Management Company Limited and Axis Asset Management Company Limited are the second and third largest shareholders.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Kaynes Technology India
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 the majority of Kaynes Technology India Limited. This means they can collectively make decisions for the company. Insiders own ₹145b worth of shares in the ₹264b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.
General Public Ownership
With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kaynes Technology 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. For instance, we've identified 2 warning signs for Kaynes Technology India (1 is a bit unpleasant) that you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.