A look at the shareholders of Euro India Fresh Foods Limited (NSE:EIFFL) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Euro India Fresh Foods is a smaller company with a market capitalization of ₹2.5b, 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 not yet purchased shares. We can zoom in on the different ownership groups, to learn more about EIFFL.
View our latest analysis for Euro India Fresh Foods
What Does The Lack Of Institutional Ownership Tell Us About Euro India Fresh Foods?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Euro India Fresh Foods’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
Hedge funds don’t have many shares in Euro India Fresh Foods. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Euro India Fresh Foods
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 Euro India Fresh Foods Limited. This means they can collectively make decisions for the company. So they have a ₹2.1b stake in this ₹2.5b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.