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A look at the shareholders of Balrampur Chini Mills Limited (NSE:BALRAMCHIN) can tell us which group is most powerful. 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.'
Balrampur Chini Mills is a smaller company with a market capitalization of ₹34b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about BALRAMCHIN.
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See our latest analysis for Balrampur Chini Mills
What Does The Institutional Ownership Tell Us About Balrampur Chini Mills?
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 Balrampur Chini Mills does have institutional investors; and they hold 23% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Balrampur Chini Mills's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Balrampur Chini Mills. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Balrampur Chini Mills
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.
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 Balrampur Chini Mills Limited. This means they can collectively make decisions for the company. That means they own ₹17b worth of shares in the ₹34b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.