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If you want to know who really controls North Eastern Carrying Corporation Limited (NSE:NECCLTD), then you’ll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.’
With a market capitalization of ₹555m, North Eastern Carrying is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about NECCLTD.
View our latest analysis for North Eastern Carrying
What Does The Institutional Ownership Tell Us About North Eastern Carrying?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
North Eastern Carrying already has institutions on the share registry. Indeed, they own 24% of the company. 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 North Eastern Carrying’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in North Eastern Carrying. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of North Eastern Carrying
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.
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 North Eastern Carrying Corporation Limited. Insiders own ₹131m worth of shares in the ₹555m company. 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.