【3524 n meridian st indianapolis in 46208】Do Directors Own Zenith Birla (India) Limited (NSE:ZENITHBIR) Shares?

A look at the shareholders of Zenith Birla (India) Limited (

NSE:ZENITHBIR

) can tell us which group is 3524 n meridian st indianapolis in 46208most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.’

Zenith Birla (India) is not a large company by global standards. It has a market capitalization of ₹79m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about ZENITHBIR.

Check out our latest analysis for Zenith Birla (India)

NSEI:ZENITHBIR Ownership Summary January 1st 19

What Does The Institutional Ownership Tell Us About Zenith Birla (India)?

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.

Since institutions own under 5% of Zenith Birla (India), many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

NSEI:ZENITHBIR Income Statement Export January 1st 19

Zenith Birla (India) is not owned by hedge funds. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Zenith Birla (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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Zenith Birla (India) Limited. Insiders own ₹19m worth of shares in the ₹79m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can

click here to see if those insiders have been buying or selling.

Story continues

General Public Ownership

The general public, mostly retail investors, hold a substantial 57% stake in ZENITHBIR, suggesting it is a fairly popular stock. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 15%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Zenith Birla (India) better, we need to consider many other factors.

Many find it useful

to take an in depth look at how a company has performed in the past. You can access

this

detailed graph

of past earnings, revenue and cash flow

.

Of course

this may not be the best stock to buy

. Therefore, you may wish to see our

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collection of interesting prospects boasting favorable financials.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

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