Do Insiders Own Shares In Bliss GVS Pharma Limited (NSE:BLISSGVS)?

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Every investor in Bliss GVS Pharma Limited (NSE:BLISSGVS) 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. 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.

Bliss GVS Pharma is not a large company by global standards. It has a market capitalization of ₹18b, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about BLISSGVS.

Check out our latest analysis for Bliss GVS Pharma

NSEI:BLISSGVS Ownership Summary, March 5th 2019
NSEI:BLISSGVS Ownership Summary, March 5th 2019

What Does The Institutional Ownership Tell Us About Bliss GVS Pharma?

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.

Bliss GVS Pharma already has institutions on the share registry. Indeed, they own 14% of the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Bliss GVS Pharma, (below). Of course, keep in mind that there are other factors to consider, too.

NSEI:BLISSGVS Income Statement, March 5th 2019
NSEI:BLISSGVS Income Statement, March 5th 2019

Bliss GVS Pharma is not owned by hedge funds. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Bliss GVS Pharma

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. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.