In This Article:
The big shareholder groups in Rajvir Industries Limited (NSE:RAJVIR) have power over the company. 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.
Rajvir Industries is a smaller company with a market capitalization of ₹44m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about RAJVIR.
See our latest analysis for Rajvir Industries
What Does The Lack Of Institutional Ownership Tell Us About Rajvir Industries?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Rajvir Industries'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.
We note that hedge funds don't have a meaningful investment in Rajvir Industries. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Rajvir Industries
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Our most recent data indicates that insiders own the majority of Rajvir Industries Limited. This means they can collectively make decisions for the company. So they have a ₹34m stake in this ₹44m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.