In This Article:
The big shareholder groups in Future Enterprises Limited (NSE:FEL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Future Enterprises is a smaller company with a market capitalization of ₹19b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about FEL.
Check out our latest analysis for Future Enterprises
What Does The Institutional Ownership Tell Us About Future Enterprises?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 7.6% of Future Enterprises. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Future Enterprises's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Future Enterprises. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Future Enterprises
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I can report that insiders do own shares in Future Enterprises Limited. It has a market capitalization of just ₹19b, and insiders have ₹494m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.