TVS Holdings Limited (NSE:TVSHLTD) Top Key Executive Venu Srinivasan's holdings dropped 3.2% in value as a result of the recent pullback

Key Insights

• TVS Holdings' significant insider ownership suggests inherent interests in company's expansion
• 70% of the company is held by a single shareholder (Venu Srinivasan)
• Institutions own 11% of TVS Holdings

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Every investor in TVS Holdings Limited (NSE:TVSHLTD) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 72% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 3.2% decline in share price, insiders suffered the most losses.

In the chart below, we zoom in on the different ownership groups of TVS Holdings.

View our latest analysis for TVS Holdings

What Does The Institutional Ownership Tell Us About TVS Holdings?

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.

TVS Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 TVS Holdings' earnings history below. Of course, the future is what really matters.

TVS Holdings is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In TVS Holdings' case, its Top Key Executive, Venu Srinivasan, is the largest shareholder, holding 70% of shares outstanding. With 3.7% and 3.3% of the shares outstanding respectively, Sundaram Finance Limited and ICICI Prudential Asset Management Company Limited are the second and third largest shareholders.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of TVS Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems that insiders own more than half the TVS Holdings Limited stock. This gives them a lot of power. Insiders own ₹165b worth of shares in the ₹230b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in TVS Holdings. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

It appears to us that public companies own 3.7% of TVS Holdings. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for TVS Holdings (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.