If you want to know who really controls Pulz Electronics Limited (NSE:PULZ), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
With a market capitalization of ₹118m, Pulz Electronics 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 much of the company. Let's take a closer look to see what the different types of shareholder can tell us about PULZ.
View our latest analysis for Pulz Electronics
What Does The Lack Of Institutional Ownership Tell Us About Pulz Electronics?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Pulz Electronics, for yourself, below.
Hedge funds don't have many shares in Pulz Electronics. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Pulz Electronics
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own the majority of Pulz Electronics Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹118m, that means they have ₹92m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.