If you want to know who really controls INEOS Styrolution India Limited (NSE:INEOSSTYRO), then you’ll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of ₹11.87b, INEOS Styrolution India is a small cap stock, so it might not be well known by many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems 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 INEOSSTYRO.
View our latest analysis for INEOS Styrolution India
What Does The Institutional Ownership Tell Us About INEOS Styrolution India?
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 6.8% of INEOS Styrolution India. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see INEOS Styrolution India’s historic earnings and revenue, below, but keep in mind there’s always more to the story.
Hedge funds don’t have many shares in INEOS Styrolution India. 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 INEOS Styrolution India
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
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 information suggests that INEOS Styrolution India 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 seems the board members have no more than ₹105.8m worth of shares in the ₹11.87b company. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.