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The big shareholder groups in Gujarat Alkalies and Chemicals Limited (NSE:GUJALKALI) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
Gujarat Alkalies and Chemicals is a smaller company with a market capitalization of ₹36b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about GUJALKALI.
Check out our latest analysis for Gujarat Alkalies and Chemicals
What Does The Institutional Ownership Tell Us About Gujarat Alkalies and Chemicals?
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.
Gujarat Alkalies and Chemicals already has institutions on the share registry. Indeed, they own 8.4% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Gujarat Alkalies and Chemicals, (below). Of course, keep in mind that there are other factors to consider, too.
Gujarat Alkalies and Chemicals is not owned by hedge funds. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Gujarat Alkalies and Chemicals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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.
We can see that insiders own shares in Gujarat Alkalies and Chemicals Limited. In their own names, insiders own ₹723m worth of stock in the ₹36b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.