Could The Manugraph India Limited (NSE:MANUGRAPH) Ownership Structure Tell Us Something Useful?

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A look at the shareholders of Manugraph India Limited (NSE:MANUGRAPH) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

Manugraph India is a smaller company with a market capitalization of ₹624m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about MANUGRAPH.

See our latest analysis for Manugraph India

NSEI:MANUGRAPH Ownership Summary, June 6th 2019
NSEI:MANUGRAPH Ownership Summary, June 6th 2019

What Does The Institutional Ownership Tell Us About Manugraph India?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors own 8.1% of Manugraph India. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Manugraph India, (below). Of course, keep in mind that there are other factors to consider, too.

NSEI:MANUGRAPH Income Statement, June 6th 2019
NSEI:MANUGRAPH Income Statement, June 6th 2019

Hedge funds don't have many shares in Manugraph India. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Manugraph India

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our information suggests that insiders maintain a significant holding in Manugraph India Limited. It has a market capitalization of just ₹624m, and insiders have ₹175m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.