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If you want to know who really controls Somany Ceramics Limited (NSE:SOMANYCERA), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.'
Somany Ceramics is a smaller company with a market capitalization of ₹9.7b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about SOMANYCERA.
Check out our latest analysis for Somany Ceramics
What Does The Institutional Ownership Tell Us About Somany Ceramics?
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.
As you can see, institutional investors own 28% of Somany Ceramics. 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 Somany Ceramics, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Somany Ceramics. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Somany Ceramics
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Somany Ceramics Limited. Insiders have a ₹978m stake in this ₹9.7b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.