A look at the shareholders of Surana Solar Limited (NSE:SURANASOL) can tell us which group is most powerful. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of 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.’

Surana Solar is not a large company by global standards. It has a market capitalization of ₹436m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about SURANASOL.

Check out our latest analysis for Surana Solar

What Does The Lack Of Institutional Ownership Tell Us About Surana Solar?

We don’t tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it’s not particularly common.

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. It is also possible that fund managers don’t own the stock because they aren’t convinced it will perform well. Surana Solar’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 Surana Solar. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Surana Solar

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.

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 Surana Solar Limited. It has a market capitalization of just ₹436m, and insiders have ₹122m 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.