Could The Debock Sales and Marketing Limited (NSE:DSML) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Debock Sales and Marketing Limited (NSE:DSML) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

Debock Sales and Marketing is not a large company by global standards. It has a market capitalization of ₹39m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about DSML.

See our latest analysis for Debock Sales and Marketing

NSEI:DSML Ownership Summary, September 13th 2019
NSEI:DSML Ownership Summary, September 13th 2019

What Does The Lack Of Institutional Ownership Tell Us About Debock Sales and Marketing?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. Debock Sales and Marketing might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

NSEI:DSML Income Statement, September 13th 2019
NSEI:DSML Income Statement, September 13th 2019

We note that hedge funds don't have a meaningful investment in Debock Sales and Marketing. 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 Debock Sales and Marketing

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. 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.