Every investor in IndiaMART InterMESH Limited (NSE:INDIAMART) 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.
IndiaMART InterMESH is not a large company by global standards. It has a market capitalization of ₹50b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about INDIAMART.
Check out our latest analysis for IndiaMART InterMESH
What Does The Institutional Ownership Tell Us About IndiaMART InterMESH?
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.
IndiaMART InterMESH already has institutions on the share registry. Indeed, they own 16% 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 IndiaMART InterMESH, (below). Of course, keep in mind that there are other factors to consider, too.
IndiaMART InterMESH is not owned by hedge funds. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of IndiaMART InterMESH
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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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 IndiaMART InterMESH Limited. This gives them effective control of the company. Given it has a market cap of ₹50b, that means they have ₹31b 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.