If you want to know who really controls Vimal Oil & Foods Limited (NSE:VIMALOIL), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.
With a market capitalization of ₹157m, Vimal Oil & Foods is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased shares. Let’s take a closer look to see what the different types of shareholder can tell us about VIMALOIL.
See our latest analysis for Vimal Oil & Foods
What Does The Lack Of Institutional Ownership Tell Us About Vimal Oil & Foods?
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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Vimal Oil & Foods’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
Vimal Oil & Foods is not owned by hedge funds. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Vimal Oil & Foods
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the Vimal Oil & Foods Limited stock. This gives them a lot of power. That means they own ₹123m worth of shares in the ₹157m company. That’s quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.