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The big shareholder groups in RattanIndia Power Limited (NSE:RTNPOWER) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of ₹9.2b, RattanIndia Power is a small cap stock, so it might not be well known by many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about RTNPOWER.
Check out our latest analysis for RattanIndia Power
What Does The Institutional Ownership Tell Us About RattanIndia Power?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
RattanIndia Power already has institutions on the share registry. Indeed, they own 10% 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 RattanIndia Power’s earnings history, below. Of course, the future is what really matters.
It looks like hedge funds own 13% of RattanIndia Power shares. That’s interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of RattanIndia Power
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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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 data suggests that insiders own under 1% of RattanIndia Power Limited in their own names. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It appears that the board holds about ₹36m worth of stock. This compares to a market capitalization of ₹9.2b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.