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A look at the shareholders of Siyaram Silk Mills Limited (NSE:SIYSIL) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.
With a market capitalization of ₹19.6b, Siyaram Silk Mills is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about SIYSIL.
Check out our latest analysis for Siyaram Silk Mills
What Does The Institutional Ownership Tell Us About Siyaram Silk Mills?
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.
Siyaram Silk Mills already has institutions on the share registry. Indeed, they own 9.6% 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. 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 Siyaram Silk Mills, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don’t have a meaningful investment in Siyaram Silk Mills. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Siyaram Silk Mills
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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 a reasonable proportion of Siyaram Silk Mills Limited. Insiders have a ₹8.9b stake in this ₹19.6b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.