What types of shareholders own JK Lakshmi Cement Limited (NSE: JKLAKSHMI)?

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A look at the shareholders of JK Lakshmi Cement Limited (NSE: JKLAKSHMI) can tell us which group is more powerful. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously owned by the state tend to have fewer insiders.

With a market cap of 80 billion yen, JK Lakshmi Cement is a decent size, so she’s probably on the radar of institutional investors. In the graph below, we can see that institutional investors have bought into the company. Let’s take a closer look at what different types of shareholders can tell us about JK Lakshmi Cement.

Check out our latest review for JK Lakshmi Cement

Distribution of NSEI property: JKLAKSHMI September 21, 2021

What does institutional ownership tell us about JK Lakshmi cement?

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 businesses to have some institutions listed, especially if they are growing.

We see that JK Lakshmi Cement has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is best not to rely on the so-called validation that comes with institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out JK Lakshmi Cement’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
NSEI: JKLAKSHMI Revenue and Revenue Growth September 21, 2021

We note that the hedge funds do not have a significant investment in JK Lakshmi Cement. The company’s largest shareholder is Bengal & Assam Company Limited, with a 44% stake. Meanwhile, the second and third shareholders hold 6.9% and 5.5% of the outstanding shares respectively. In addition, we found that Bharat Singhania, the CEO, owns 0.5% of the shares allocated to their name.

After digging a little deeper, we found that the top 2 shareholders collectively control over half of the company’s stock, implying that they have considerable power to influence company decisions.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so you can look at expected growth quite easily.

Insider property of JK Lakshmi Cement

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would likely be interested to learn that insiders hold shares in JK Lakshmi Cement Limited. Insiders have a significant stake worth ₹ 3.4b. Most would see this as a real benefit. It’s good to see this level of investment from the insiders. You can check here if these insiders have bought recently.

General public property

With a 10% stake, the general public has some influence over JK Lakshmi Cement. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Owned by a private company

Our data indicates that private companies own 3.2% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Public enterprise ownership

It seems to us that state-owned companies own 44% of JK Lakshmi Cement. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Consider risks, for example. Every business has them, and we’ve spotted 2 warning signs for JK Lakshmi Cement you should know.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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