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The big shareholder groups in Mahanagar Telephone Nigam Limited (NSE:MTNL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of ₹8.7b, Mahanagar Telephone Nigam is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about MTNL.
View our latest analysis for Mahanagar Telephone Nigam
What Does The Institutional Ownership Tell Us About Mahanagar Telephone Nigam?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 23% of Mahanagar Telephone Nigam. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Mahanagar Telephone Nigam’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Mahanagar Telephone Nigam. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Mahanagar Telephone Nigam
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
We can see that insiders own shares in Mahanagar Telephone Nigam Limited. As individuals, the insiders collectively own ₹193m worth of the ₹8.7b company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.