Market cap

The market cap of Shipping Corporation of India Limited (NSE:SCI) jumped by ₹4.4 billion last week as the state or government that has a lot to do with the company has been rewarded

If you want to know who actually controls The Shipping Corporation of India Limited (NSE:SCI), then you will need to look at the composition of its share register. We can see that the state or government owns the lion’s share of the business with 64% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

As a result, the state or government was the main beneficiary of last week’s 7.7% gain.

Let’s take a closer look at what different types of shareholders can tell us about Shipping Corporation of India.

See our latest review for Shipping Corporation of India

NSEI: Breakdown of SCI ownership as of November 3, 2022

What does institutional ownership tell us about Shipping Corporation of India?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Shipping Corporation of India has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of Shipping Corporation of India below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI: SCI Earnings and Revenue Growth November 3, 2022

We note that hedge funds have no significant investment in Shipping Corporation of India. Looking at our data, we can see that the largest shareholder is India with 64% of the shares outstanding. This implies that they have majority control over the future of the company. Meanwhile, the second and third largest shareholders hold 5.9% and 0.7% of the outstanding shares respectively.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.

Insider ownership of Shipping Corporation of India

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that insiders of The Shipping Corporation of India Limited own less than 1% of the company. It looks like the board holds around ₹254,000 of shares. This compares to a market cap of ₹62b. We generally like to see a more invested board. However, it may be useful to check whether these insiders have bought.

General public property

The general public, including retail investors, owns 29% of the company’s capital and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Shipping Corporation of India, we need to consider many other factors.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

Find out if Maritime Corporation of India is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.