A look at the shareholders of Emkay Taps and Cutting Tools Limited (NSE:EMKAYTOOLS) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
Emkay Taps and Cutting Tools is not a large company by global standards. It has a market capitalization of ₹2.6b, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let’s delve deeper into each type of owner, to discover more about EMKAYTOOLS.
See our latest analysis for Emkay Taps and Cutting Tools
What Does The Lack Of Institutional Ownership Tell Us About Emkay Taps and Cutting Tools?
Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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. Emkay Taps and Cutting Tools’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
Emkay Taps and Cutting Tools is not owned by hedge funds. 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 Emkay Taps and Cutting Tools
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.