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A look at the shareholders of Dynacons Systems & Solutions Limited (NSE:DSSL) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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 ₹247m, Dynacons Systems & Solutions is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about DSSL.
Check out our latest analysis for Dynacons Systems & Solutions
What Does The Lack Of Institutional Ownership Tell Us About Dynacons Systems & Solutions?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Dynacons Systems & Solutions, for yourself, below.
We note that hedge funds don't have a meaningful investment in Dynacons Systems & Solutions. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Dynacons Systems & Solutions
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.
Our information suggests that insiders own more than half of Dynacons Systems & Solutions Limited. This gives them effective control of the company. Given it has a market cap of ₹247m, that means they have ₹135m 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.