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A look at the shareholders of Maithan Alloys Limited (NSE:MAITHANALL) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. 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.’
Maithan Alloys is not a large company by global standards. It has a market capitalization of ₹15.71b, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about MAITHANALL.
Check out our latest analysis for Maithan Alloys
What Does The Institutional Ownership Tell Us About Maithan Alloys?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 7.4% of Maithan Alloys. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Maithan Alloys’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Maithan Alloys. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Maithan Alloys
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.
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 information suggests that insiders maintain a significant holding in Maithan Alloys Limited. Insiders have a ₹3.50b stake in this ₹15.71b business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.