WEBULL

Public companies in Thomas Cook (India) Limited (NSE:THOMASCOOK) are its biggest bettors, and their bets paid off as stock gained 9.5% last week

Simply Wall St · 03/23/2025 02:19

Key Insights

  • Thomas Cook (India)'s significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The largest shareholder of the company is Fairfax Financial Holdings Limited with a 65% stake
  • Insiders have been buying lately

To get a sense of who is truly in control of Thomas Cook (India) Limited (NSE:THOMASCOOK), it is important to understand the ownership structure of the business. With 65% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by ₹5.7b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Thomas Cook (India).

View our latest analysis for Thomas Cook (India)

ownership-breakdown
NSEI:THOMASCOOK Ownership Breakdown March 23rd 2025

What Does The Institutional Ownership Tell Us About Thomas Cook (India)?

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 Thomas Cook (India). 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Thomas Cook (India)'s historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NSEI:THOMASCOOK Earnings and Revenue Growth March 23rd 2025

Thomas Cook (India) is not owned by hedge funds. Fairfax Financial Holdings Limited is currently the largest shareholder, with 65% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Aditya Birla Sun Life AMC Limited is the second largest shareholder owning 2.9% of common stock, and Nippon Life India Asset Management Limited holds about 2.0% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Thomas Cook (India)

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.

Shareholders would probably be interested to learn that insiders own shares in Thomas Cook (India) Limited. As individuals, the insiders collectively own ₹1.5b worth of the ₹65b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 65% of Thomas Cook (India). This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Thomas Cook (India) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.