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Every investor in LG Balakrishnan & Bros Limited (NSE:LGBBROSLTD) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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.
L.G. Balakrishnan & Bros is not a large company by global standards. It has a market capitalization of ₹14.78b, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about LGBBROSLTD.
Check out our latest analysis for L.G. Balakrishnan & Bros
What Does The Institutional Ownership Tell Us About L.G. Balakrishnan & Bros?
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.
We can see that L.G. Balakrishnan & Bros does have institutional investors; and they hold 18.3% 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. 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 L.G. Balakrishnan & Bros’s earnings history, below. Of course, the future is what really matters.
L.G. Balakrishnan & Bros is not owned by hedge funds. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of L.G. Balakrishnan & Bros
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.
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.