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The big shareholder groups in Hindcon Chemicals Limited (NSE:HINDCON) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in 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.'

Hindcon Chemicals is not a large company by global standards. It has a market capitalization of ₹210m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about HINDCON.

See our latest analysis for Hindcon Chemicals

What Does The Institutional Ownership Tell Us About Hindcon Chemicals?

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.

We can see that Hindcon Chemicals does have institutional investors; and they hold 7.2% of the stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Hindcon Chemicals's historic earnings and revenue, below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Hindcon Chemicals. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hindcon Chemicals

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.