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A look at the shareholders of AYM Syntex Limited (NSE:AYMSYNTEX) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.'
AYM Syntex is not a large company by global standards. It has a market capitalization of ₹1.6b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased shares. Let's delve deeper into each type of owner, to discover more about AYMSYNTEX.
Check out our latest analysis for AYM Syntex
What Does The Lack Of Institutional Ownership Tell Us About AYM Syntex?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of AYM Syntex, for yourself, below.
Hedge funds don't have many shares in AYM Syntex. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of AYM Syntex
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.
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.
Our information suggests that insiders own more than half of AYM Syntex Limited. This gives them effective control of the company. That means they own ₹1.1b worth of shares in the ₹1.6b 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.