The big shareholder groups in CKP Leisure Limited (NSE:CKPLEISURE) 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. 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.

CKP Leisure is a smaller company with a market capitalization of ₹49m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about CKPLEISURE.

See our latest analysis for CKP Leisure

What Does The Institutional Ownership Tell Us About CKP Leisure?

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.

We can see that CKP Leisure does have institutional investors; and they hold 18% of the stock. 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. 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 CKP Leisure's historic earnings and revenue, below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in CKP Leisure. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of CKP Leisure

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.

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 the majority of CKP Leisure Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹49m, that means they have ₹31m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.