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A look at the shareholders of Nitin Fire Protection Industries Limited (NSE:NITINFIRE) 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. 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.'
Nitin Fire Protection Industries is a smaller company with a market capitalization of ₹172m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about NITINFIRE.
View our latest analysis for Nitin Fire Protection Industries
What Does The Institutional Ownership Tell Us About Nitin Fire Protection Industries?
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.
We can see that Nitin Fire Protection Industries does have institutional investors; and they hold 6.9% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Nitin Fire Protection Industries, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Nitin Fire Protection Industries. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Nitin Fire Protection Industries
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.