Every investor in Eimco Elecon (India) Limited (NSE:EIMCOELECO) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of ₹2.3b, Eimco Elecon (India) is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about EIMCOELECO.

Check out our latest analysis for Eimco Elecon (India)

What Does The Institutional Ownership Tell Us About Eimco Elecon (India)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Eimco Elecon (India) already has institutions on the share registry. Indeed, they own 6.8% of the company. 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. 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 Eimco Elecon (India)’s earnings history, below. Of course, the future is what really matters.

Hedge funds don’t have many shares in Eimco Elecon (India). As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Eimco Elecon (India)

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.

We can see that insiders own shares in Eimco Elecon (India) Limited. It has a market capitalization of just ₹2.3b, and insiders have ₹50m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 19% stake in the company, will not easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.