In This Article:
Every investor in Vishnu Chemicals Limited (NSE:VISHNU) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.’
Vishnu Chemicals is a smaller company with a market capitalization of ₹2.39b, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutional investors have not yet purchased much of the company. Let’s take a closer look to see what the different types of shareholder can tell us about VISHNU.
See our latest analysis for Vishnu Chemicals
What Does The Lack Of Institutional Ownership Tell Us About Vishnu Chemicals?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Vishnu Chemicals might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Vishnu Chemicals is not owned by hedge funds. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Vishnu Chemicals
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.
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.
It seems that insiders own more than half the Vishnu Chemicals Limited stock. This gives them a lot of power. Given it has a market cap of ₹2.39b, that means they have ₹1.95b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.