What Percentage Of Cantabil Retail India Limited (NSE:CANTABIL) Shares Do Insiders Own?

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Every investor in Cantabil Retail India Limited (NSE:CANTABIL) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

Cantabil Retail India is not a large company by global standards. It has a market capitalization of ₹3.9b, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about CANTABIL.

View our latest analysis for Cantabil Retail India

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

What Does The Institutional Ownership Tell Us About Cantabil Retail India?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Cantabil Retail India already has institutions on the share registry. Indeed, they own 9.5% of the company. 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 Cantabil Retail India’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

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

Cantabil Retail India is not owned by hedge funds. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Cantabil Retail India

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. 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.