Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) institutional owners may be pleased with recent gains after 34% loss over the past year

Key Insights

• Given the large stake in the stock by institutions, Crompton Greaves Consumer Electricals' stock price might be vulnerable to their trading decisions
• A total of 12 investors have a majority stake in the company with 52% ownership
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON), then you'll have to look at the makeup of its share registry. With 84% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would appreciate the 3.3% increase in share price last week, given their one-year losses have totalled a disappointing 34%.

Let's take a closer look to see what the different types of shareholders can tell us about Crompton Greaves Consumer Electricals.

Check out our latest analysis for Crompton Greaves Consumer Electricals

What Does The Institutional Ownership Tell Us About Crompton Greaves Consumer Electricals?

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.

As you can see, institutional investors have a fair amount of stake in Crompton Greaves Consumer Electricals. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Crompton Greaves Consumer Electricals' earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Crompton Greaves Consumer Electricals is not owned by hedge funds. The company's largest shareholder is HDFC Asset Management Company Limited, with ownership of 9.8%. In comparison, the second and third largest shareholders hold about 8.2% and 6.0% of the stock.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 52% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Crompton Greaves Consumer Electricals

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.

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.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Crompton Greaves Consumer Electricals. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Crompton Greaves Consumer Electricals better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Crompton Greaves Consumer Electricals you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.