What Kind Of Shareholders Own A B Infrabuild Limited (NSE:ABINFRA)?

Every investor in A B Infrabuild Limited (NSE:ABINFRA) 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

A B Infrabuild is a smaller company with a market capitalization of ₹247m, 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 are not really that prevalent on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about ABINFRA.

Check out our latest analysis for A B Infrabuild

NSEI:ABINFRA Ownership Summary, October 12th 2019
NSEI:ABINFRA Ownership Summary, October 12th 2019

What Does The Institutional Ownership Tell Us About A B Infrabuild?

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.

Institutions own less than 5% of A B Infrabuild. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

NSEI:ABINFRA Income Statement, October 12th 2019
NSEI:ABINFRA Income Statement, October 12th 2019

A B Infrabuild is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of A B Infrabuild

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our most recent data indicates that insiders own the majority of A B Infrabuild Limited. This means they can collectively make decisions for the company. So they have a ₹161m stake in this ₹247m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.