Every investor in Salzer Electronics Limited (NSE:SALZER) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
With a market capitalization of ₹2.55b, Salzer Electronics 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 SALZER.
Check out our latest analysis for Salzer Electronics
What Does The Institutional Ownership Tell Us About Salzer Electronics?
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 Salzer Electronics does have institutional investors; and they hold 15.3% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Salzer Electronics’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Salzer Electronics. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Salzer Electronics
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.
It seems insiders own a significant proportion of Salzer Electronics Limited. Insiders own ₹392.2m worth of shares in the ₹2.55b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.