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Every investor in JK Lakshmi Cement Limited (NSE:JKLAKSHMI) 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 generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
JK Lakshmi Cement is not a large company by global standards. It has a market capitalization of ₹38b, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about JKLAKSHMI.
Check out our latest analysis for JK Lakshmi Cement
What Does The Institutional Ownership Tell Us About JK Lakshmi Cement?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
JK Lakshmi Cement already has institutions on the share registry. Indeed, they own 32% 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. 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 JK Lakshmi Cement's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in JK Lakshmi Cement. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of JK Lakshmi Cement
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Shareholders would probably be interested to learn that insiders own shares in JK Lakshmi Cement Limited. In their own names, insiders own ₹2.3b worth of stock in the ₹38b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.