In This Article:
The big shareholder groups in Sumeet Industries Limited (NSE:SUMEETINDS) have power over the company. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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.’
Sumeet Industries is a smaller company with a market capitalization of ₹532m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about SUMEETINDS.
See our latest analysis for Sumeet Industries
What Does The Institutional Ownership Tell Us About Sumeet Industries?
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.
Sumeet Industries already has institutions on the share registry. Indeed, they own 13% 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 Sumeet Industries’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Sumeet Industries. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Sumeet Industries
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Sumeet Industries Limited. Insiders own ₹70m worth of shares in the ₹532m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.