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A look at the shareholders of Rashtriya Chemicals and Fertilizers Limited (NSE:RCF) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of ₹31.9b, Rashtriya Chemicals and Fertilizers 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. We can zoom in on the different ownership groups, to learn more about RCF.
View our latest analysis for Rashtriya Chemicals and Fertilizers
What Does The Institutional Ownership Tell Us About Rashtriya Chemicals and Fertilizers?
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 Rashtriya Chemicals and Fertilizers does have institutional investors; and they hold 6.9% of the stock. 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 Rashtriya Chemicals and Fertilizers’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Rashtriya Chemicals and Fertilizers. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Rashtriya Chemicals and Fertilizers
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Rashtriya Chemicals and Fertilizers Limited insiders own under 1% of the company. It has a market capitalization of just ₹31.9b, and the board has only ₹232m worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.