In This Article:
If you want to know who really controls Sundaram Multi Pap Limited (NSE:SUNDARAM), then you’ll have to look at the makeup of its share registry. 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.’
With a market capitalization of ₹576m, Sundaram Multi Pap 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 SUNDARAM.
See our latest analysis for Sundaram Multi Pap
What Does The Institutional Ownership Tell Us About Sundaram Multi Pap?
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 6.4% of Sundaram Multi Pap. 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 Sundaram Multi Pap’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 Sundaram Multi Pap. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Sundaram Multi Pap
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.
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 most recent data indicates that insiders own a reasonable proportion of Sundaram Multi Pap Limited. Insiders own ₹153m worth of shares in the ₹576m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.