Every investor in B.C. Power Controls Limited (NSE:BCP) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in 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.
With a market capitalization of ₹465m, B.C. Power Controls is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about BCP.
View our latest analysis for B.C. Power Controls
What Does The Institutional Ownership Tell Us About B.C. Power Controls?
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.
B.C. Power Controls already has institutions on the share registry. Indeed, they own 16% of the company. 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 B.C. Power Controls, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in B.C. Power Controls. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of B.C. Power Controls
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 a reasonable proportion of B.C. Power Controls Limited. Insiders have a ₹153m stake in this ₹465m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
The general public holds a 33% stake in BCP. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.