The big shareholder groups in Shree Vasu Logistics Limited (NSE:SVLL) have power over the company. 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.’
Shree Vasu Logistics is not a large company by global standards. It has a market capitalization of ₹486.9m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don’t own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about SVLL.
See our latest analysis for Shree Vasu Logistics
What Does The Lack Of Institutional Ownership Tell Us About Shree Vasu Logistics?
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 are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at 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. Shree Vasu Logistics’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.
We note that hedge funds don’t have a meaningful investment in Shree Vasu Logistics. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Shree Vasu Logistics
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. 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.
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 most recent data indicates that insiders own the majority of Shree Vasu Logistics Limited. This means they can collectively make decisions for the company. That means they own ₹355.4m worth of shares in the ₹486.9m company. That’s quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.