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A look at the shareholders of Kothari Sugars and Chemicals Limited (NSE:KOTARISUG) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
Kothari Sugars and Chemicals is a smaller company with a market capitalization of ₹866m, 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 are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about KOTARISUG.
Check out our latest analysis for Kothari Sugars and Chemicals
What Does The Institutional Ownership Tell Us About Kothari Sugars and Chemicals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 5.9% of Kothari Sugars and Chemicals. 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. 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 Kothari Sugars and Chemicals, (below). Of course, keep in mind that there are other factors to consider, too.
Kothari Sugars and Chemicals is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Kothari Sugars and Chemicals
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
I can report that insiders do own shares in Kothari Sugars and Chemicals Limited. As individuals, the insiders collectively own ₹40m worth of the ₹866m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.