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If you want to know who really controls Indian Terrain Fashions Limited (NSE:INDTERRAIN), then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.
Indian Terrain Fashions is a smaller company with a market capitalization of ₹5.05b, 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. Let’s delve deeper into each type of owner, to discover more about INDTERRAIN.
View our latest analysis for Indian Terrain Fashions
What Does The Institutional Ownership Tell Us About Indian Terrain Fashions?
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.
As you can see, institutional investors own 39.5% of Indian Terrain Fashions. 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. 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 Indian Terrain Fashions’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have a many shares in Indian Terrain Fashions. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Indian Terrain Fashions
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.
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. It seems insiders own a significant proportion of Indian Terrain Fashions Limited. It has a market capitalization of just ₹5.05b, and insiders have ₹1.77b worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.