Every investor in Vakrangee Limited (NSE: VAKRANGEE) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 42% 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, individual investors as a group suffered the highest losses last week after the market cap fell by ₹3.4 billion.
Let’s dive deeper into each Vakrangee owner type, starting with the table below.
Discover our latest analysis for Vakrangee
What does institutional ownership tell us about Vakrangee?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Vakrangee already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Vakrangee’s historical revenue and earnings below, but keep in mind there’s always more to the story.
Hedge funds don’t have a lot of shares in Vakrangee. The company’s largest shareholder is Vakrangee Holdings Private Limited with a 24% stake. NJD Capital Private Limited is the second largest shareholder with 12% of the common shares and Dinesh Nandwana owns around 6.5% of the company’s shares. Dinesh Nandwana, who is the third shareholder, also holds the title of member of the board of directors.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.
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. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.
Vakrangee Insider Property
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 most recent data indicates that insiders hold shares of Vakrangee Limited. As individuals, Insiders collectively own ₹2.4 billion of the ₹25 billion society. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.
General public property
The general public, who are usually individual investors, hold a 42% stake in Vakrangee. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
It seems that private companies own 36% of the shares of Vakrangee. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is worth considering the different groups that own a business, there are other, even more important factors. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for Vakrangee (1 of which is a little worrying!) that you should know about.
Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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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.