Which type of shareholders owns the most Bajaj Finserv Ltd. shares? (NSE: BAJAJFINSV)?
Each investor in Bajaj Finserv Ltd. (NSE: BAJAJFINSV) must know the most powerful groups of shareholders. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously state-owned tend to have fewer insiders.
Bajaj Finserv has a market cap of 2.8t, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about Bajaj Finserv.
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What does institutional ownership tell us about Bajaj Finserv?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Bajaj Finserv already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying 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 Bajaj Finserv’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Bajaj Finserv is not owned by hedge funds. Bajaj Holdings & Investment Limited is currently the largest shareholder in the company with 42% of the shares outstanding. With respectively 12% and 3.9% of the shares outstanding, Bajaj Sevashram Pvt. Ltd. and Jaya Hind Investments Private Limited are the second and third largest shareholders.
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 it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Bajaj Finserv Insider Property
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
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.
We can see that the insiders own shares of Bajaj Finserv Ltd. It is a very large company and the members of the board of directors collectively own 104 billion yen (at current prices). It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
With a 23% stake, the general public has some influence over Bajaj Finserv. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Owned by a private company
Our data indicates that private companies own 22% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of ââresearch.
Public enterprise ownership
It can be seen that state-owned companies hold 42% of Bajaj Finserv shares on issue. It may be a strategic interest and the two companies may have related business interests. They may have defused. This exploitation probably deserves further study.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we discovered 3 warning signs for Bajaj Finserv (1 cannot be ignored!) Which you should be aware of before investing here.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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 documents. Simply Wall St has no position in any of the stocks mentioned.
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