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Every investor in L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.'
L.G. Balakrishnan & Bros is a smaller company with a market capitalization of ₹11b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about LGBBROSLTD.
View our latest analysis for L.G. Balakrishnan & Bros
What Does The Institutional Ownership Tell Us About L.G. Balakrishnan & Bros?
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 19% of L.G. Balakrishnan & Bros. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at L.G. Balakrishnan & Bros's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in L.G. Balakrishnan & Bros. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of L.G. Balakrishnan & Bros
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 a reasonable proportion of L.G. Balakrishnan & Bros Limited. Insiders own ₹4.6b worth of shares in the ₹11b company. 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.