Which type of shareholders owns the most shares of Century Enka Limited (NSE: CENTENKA)?
If you want to know who actually controls Century Enka Limited (NSE: CENTENKA), you will need to look at the composition of its share register. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.
Century Enka is not a big company by global standards. It has a market capitalization of ₹13 billion, which means it would not get the attention of many institutional investors. Our analysis of societal ownership below shows that institutions own shares in society. Let’s take a closer look at what different types of shareholders can tell us about Century Enka.
Discover our latest analysis for Century Enka
What does institutional ownership tell us about Century Enka?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Century Enka already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Century Enka (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds do not have many shares in Century Enka. Birla Group Holdings Private Limited is currently the largest shareholder, with 17% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 5.8% and 4.6% of the outstanding shares respectively.
A closer look at our ownership data shows that the top 24 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider ownership of Century Enka
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our most recent data indicates that insiders hold shares of Century Enka Limited. As individuals, Insiders collectively own ₹734 million of the ₹13 billion society. Some would say this shows the alignment of interests between shareholders and the board, although we generally prefer to see larger insider participations. But it might be worth checking to see if these insiders have sold.
General public property
The general public, who are usually individual investors, hold a substantial 56% stake in Century Enka, suggesting that it is quite a popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation and dividend payout ratio.
Private Company Ownership
We can see that private companies hold 22% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
Ownership of a public company
We can see that public companies hold 5.8% of outstanding Century Enka shares. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Consider the risks, for example. Every business has them, and we’ve spotted 2 warning signs for Century Enka you should know.
Sure this may not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.