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The big shareholder groups in ITD Cementation India Limited (NSE:ITDCEM) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
ITD Cementation India is a smaller company with a market capitalization of ₹20b, so it may still be flying under the radar of 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 ITDCEM.
View our latest analysis for ITD Cementation India
What Does The Institutional Ownership Tell Us About ITD Cementation India?
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.
ITD Cementation India already has institutions on the share registry. Indeed, they own 33% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 ITD Cementation India, (below). Of course, keep in mind that there are other factors to consider, too.
ITD Cementation India 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 ITD Cementation India
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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.
We can see that insiders own shares in ITD Cementation India Limited. In their own names, insiders own ₹457m worth of stock in the ₹20b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.