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A look at the shareholders of Gulshan Polyols Limited (NSE:GULPOLY) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.’
Gulshan Polyols is a smaller company with a market capitalization of ₹2.6b, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are not on the share registry. Let’s delve deeper into each type of owner, to discover more about GULPOLY.
See our latest analysis for Gulshan Polyols
What Does The Lack Of Institutional Ownership Tell Us About Gulshan Polyols?
Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.
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. Gulshan Polyols might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
It would appear that 10.0% of Gulshan Polyols shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Gulshan Polyols
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems insiders own a significant proportion of Gulshan Polyols Limited. Insiders have a ₹511m stake in this ₹2.6b business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.