The big shareholder groups in Filatex India Limited (NSE:FILATEX) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

Filatex India is not a large company by global standards. It has a market capitalization of ₹7.9b, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about FILATEX.

See our latest analysis for Filatex India

What Does The Institutional Ownership Tell Us About Filatex India?

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.

We can see that Filatex India does have institutional investors; and they hold 8.1% of the stock. 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. 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 Filatex India, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Filatex India. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Filatex India

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

It seems insiders own a significant proportion of Filatex India Limited. Insiders own ₹3.0b worth of shares in the ₹7.9b company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.