Gufic Biosciences Limited's (NSE:GUFICBIO) most bullish insider, Top Key Executive Jayesh Choksi must be pleased with the recent 14% gain

Simply Wall St · 10/17 00:08

Key Insights

  • Insiders appear to have a vested interest in Gufic Biosciences' growth, as seen by their sizeable ownership
  • 55% of the business is held by the top 3 shareholders
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Gufic Biosciences Limited (NSE:GUFICBIO) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 44% 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 were the biggest beneficiaries of last week’s 14% gain.

Let's delve deeper into each type of owner of Gufic Biosciences, beginning with the chart below.

See our latest analysis for Gufic Biosciences

ownership-breakdown
NSEI:GUFICBIO Ownership Breakdown October 17th 2024

What Does The Institutional Ownership Tell Us About Gufic Biosciences?

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.

Gufic Biosciences already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Gufic Biosciences, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NSEI:GUFICBIO Earnings and Revenue Growth October 17th 2024

We note that hedge funds don't have a meaningful investment in Gufic Biosciences. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Gufic Biosciences' case, its Top Key Executive, Jayesh Choksi, is the largest shareholder, holding 25% of shares outstanding. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 10% by the third-largest shareholder. Furthermore, CEO Pranav Choksi is the owner of 7.2% of the company's shares.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. 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 Gufic Biosciences

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our most recent data indicates that insiders own a reasonable proportion of Gufic Biosciences Limited. Insiders have a ₹20b stake in this ₹44b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Gufic Biosciences. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 31%, of the Gufic Biosciences stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Gufic Biosciences is showing 1 warning sign in our investment analysis , you should know about...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free 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.