A look at the shareholders of Airo Lam Limited (NSE:AIROLAM) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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 ₹406m, Airo Lam is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about AIROLAM.
See our latest analysis for Airo Lam
What Does The Lack Of Institutional Ownership Tell Us About Airo Lam?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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 Airo Lam, for yourself, below.
We note that hedge funds don't have a meaningful investment in Airo Lam. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Airo Lam
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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.
Our most recent data indicates that insiders own the majority of Airo Lam Limited. This means they can collectively make decisions for the company. So they have a ₹236m stake in this ₹406m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.