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A look at the shareholders of Maharashtra Seamless Limited (NSE:MAHSEAMLES) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of ₹32b, Maharashtra Seamless 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 institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about MAHSEAMLES.
See our latest analysis for Maharashtra Seamless
What Does The Institutional Ownership Tell Us About Maharashtra Seamless?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Maharashtra Seamless already has institutions on the share registry. Indeed, they own 15% of the company. 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 Maharashtra Seamless's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Maharashtra Seamless. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Maharashtra Seamless
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I can report that insiders do own shares in Maharashtra Seamless Limited. As individuals, the insiders collectively own ₹1.2b worth of the ₹32b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.