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The big shareholder groups in Jain Irrigation Systems Limited (NSE:JISLDVREQS) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Jain Irrigation Systems is not a large company by global standards. It has a market capitalization of ₹35b, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about JISLDVREQS.
View our latest analysis for Jain Irrigation Systems
What Does The Institutional Ownership Tell Us About Jain Irrigation Systems?
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.
Jain Irrigation Systems already has institutions on the share registry. Indeed, they own 32% 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. 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 Jain Irrigation Systems’s earnings history, below. Of course, the future is what really matters.
Jain Irrigation Systems is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Jain Irrigation Systems
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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.
I can report that insiders do own shares in Jain Irrigation Systems Limited. As individuals, the insiders collectively own ₹1.5b worth of the ₹35b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.