VA Tech Wabag's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 20 shareholders own 50% of the company
Recent sales by insiders
If you want to know who really controls VA Tech Wabag Limited (NSE:WABAG), then you'll have to look at the makeup of its share registry.With 49% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual insiders make up 28% of the company’s shareholders.Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of VA Tech Wabag, beginning with the chart below.
View our latest analysis for VA Tech Wabag
NSEI:WABAG Ownership Breakdown November 25th 2024
What Does The Institutional Ownership Tell Us About VA Tech Wabag?
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.
We can see that VA Tech Wabag does have institutional investors; and they hold a good portion of the company's stock.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 VA Tech Wabag's earnings history below. Of course, the future is what really matters.
NSEI:WABAG Earnings and Revenue Growth November 25th 2024
VA Tech Wabag is not owned by hedge funds.With a 16% stake, CEO Rajiv Mittal is the largest shareholder.With 8.0% and 3.5% of the shares outstanding respectively, Rekha Jhunjhunwala and Subramanian Varadarajan are the second and third largest shareholders.Interestingly, the third-largest shareholder, Subramanian Varadarajan is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.
After doing some more digging, we found that the top 20 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of VA Tech Wabag
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.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.
Our information suggests that insiders maintain a significant holding in VA Tech Wabag Limited.It has a market capitalization of just ₹105b, and insiders have ₹30b worth of shares in their own names. That's quite significant.Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 49% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
Our data indicates that Private Companies hold 3.0%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand VA Tech Wabag better, we need to consider many other factors.
I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
