Nasdaq
華爾街日報Allied Blenders and Distillers Limited's (NSE:ABDL) top holders are insiders and they are likely disappointed by the recent 4.1% drop
Key Insights
- Significant insider control over Allied Blenders and Distillers implies vested interests in company growth
- The largest shareholder of the company is Bina Chhabria with a 58% stake
- Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Allied Blenders and Distillers Limited (NSE:ABDL) can tell us which group is most powerful. With 78% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As market cap fell to ₹168b last week, insiders would have faced the highest losses than any other shareholder groups of the company.
Let's take a closer look to see what the different types of shareholders can tell us about Allied Blenders and Distillers.
See our latest analysis for Allied Blenders and Distillers
What Does The Institutional Ownership Tell Us About Allied Blenders and Distillers?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Allied Blenders and Distillers 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Allied Blenders and Distillers, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Allied Blenders and Distillers. The company's largest shareholder is Bina Chhabria, with ownership of 58%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder. Resham Chhabria Hemdev, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Allied Blenders and Distillers
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our most recent data indicates that insiders own the majority of Allied Blenders and Distillers Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹168b, that means insiders have a whopping ₹131b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Allied Blenders and Distillers. 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.
Private Company Ownership
Our data indicates that Private Companies hold 3.3%, of the company's shares. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 2 warning signs we've spotted with Allied Blenders and Distillers (including 1 which is a bit unpleasant) .
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.