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Every investor in Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.’
Sudarshan Chemical Industries is a smaller company with a market capitalization of ₹23b, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about SUDARSCHEM.
Check out our latest analysis for Sudarshan Chemical Industries
What Does The Institutional Ownership Tell Us About Sudarshan Chemical Industries?
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 8.4% of Sudarshan Chemical Industries. 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 Sudarshan Chemical Industries’s earnings history, below. Of course, the future is what really matters.
Sudarshan Chemical Industries is not owned by hedge funds. 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 Sudarshan Chemical Industries
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.
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 most recent data indicates that insiders own the majority of Sudarshan Chemical Industries Limited. This means they can collectively make decisions for the company. So they have a ₹14b stake in this ₹23b business. 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.