Every investor in Century Plyboards (India) Limited (NSE:CENTURYPLY) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

Century Plyboards (India) is not a large company by global standards. It has a market capitalization of ₹36b, which means it wouldn't have the attention of 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 CENTURYPLY.

See our latest analysis for Century Plyboards (India)

What Does The Institutional Ownership Tell Us About Century Plyboards (India)?

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.

Century Plyboards (India) already has institutions on the share registry. Indeed, they own 17% of the company. 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 Century Plyboards (India), (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 Century Plyboards (India). Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Century Plyboards (India)

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.

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 own more than half of Century Plyboards (India) Limited. This gives them effective control of the company. That means they own ₹20b worth of shares in the ₹36b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.