Insiders were the biggest winners as Geojit Financial Services Limited's (NSE:GEOJITFSL) market cap grew by ₹2.7b last week

Key Insights

• Geojit Financial Services' significant insider ownership suggests inherent interests in company's expansion
• A total of 4 investors have a majority stake in the company with 57% ownership
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

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If you want to know who really controls Geojit Financial Services Limited (NSE:GEOJITFSL), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit ₹22b market cap following a 14% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Geojit Financial Services.

See our latest analysis for Geojit Financial Services

What Does The Lack Of Institutional Ownership Tell Us About Geojit Financial Services?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Geojit Financial Services' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Geojit Financial Services is not owned by hedge funds. The company's largest shareholder is BNP Paribas SA, with ownership of 22%. With 19% and 8.4% of the shares outstanding respectively, Chenayappillil George and Kerala State Industrial Development Corporation, Ltd. are the second and third largest shareholders. Chenayappillil George, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On looking further, we found that 57% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Geojit Financial Services

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Geojit Financial Services Limited. Insiders own ₹8.1b worth of shares in the ₹22b company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 31% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 22% of Geojit Financial Services stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 instance, we've identified 3 warning signs for Geojit Financial Services that you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.