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If you want to know who really controls Alpa Laboratories Limited (NSE:ALPA), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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.
Alpa Laboratories is not a large company by global standards. It has a market capitalization of ₹657.5m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about ALPA.
View our latest analysis for Alpa Laboratories
What Does The Lack Of Institutional Ownership Tell Us About Alpa Laboratories?
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 many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Alpa Laboratories, for yourself, below.
We note that hedge funds don’t have a meaningful investment in Alpa Laboratories. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Alpa Laboratories
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.
Our most recent data indicates that insiders own the majority of Alpa Laboratories Limited. This means they can collectively make decisions for the company. So they have a ₹414.6m stake in this ₹657.5m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.