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The big shareholder groups in Tamil Nadu Newsprint and Papers Limited (NSE:TNPL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Tamil Nadu Newsprint and Papers is not a large company by global standards. It has a market capitalization of ₹13b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about TNPL.
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View our latest analysis for Tamil Nadu Newsprint and Papers
What Does The Institutional Ownership Tell Us About Tamil Nadu Newsprint and Papers?
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.
We can see that Tamil Nadu Newsprint and Papers does have institutional investors; and they hold 40% of the stock. 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 Tamil Nadu Newsprint and Papers, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Tamil Nadu Newsprint and Papers. 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 Tamil Nadu Newsprint and Papers
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. 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 information suggests that Tamil Nadu Newsprint and Papers Limited insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about ₹1.8k worth of stock. This compares to a market capitalization of ₹13b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.