TAJGVK Hotels & Resorts Limited's (NSE:TAJGVK) market cap dropped ₹2.7b last week; Private companies bore the brunt

Key Insights

• The considerable ownership by private companies in TAJGVK Hotels & Resorts indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 68% of the company
• Institutional ownership in TAJGVK Hotels & Resorts is 15%

We've discovered 2 warning signs about TAJGVK Hotels & Resorts. View them for free.

A look at the shareholders of TAJGVK Hotels & Resorts Limited (NSE:TAJGVK) can tell us which group is most powerful. The group holding the most number of shares in the company, around 42% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies as a group endured the highest losses last week after market cap fell by ₹2.7b.

Let's delve deeper into each type of owner of TAJGVK Hotels & Resorts, beginning with the chart below.

View our latest analysis for TAJGVK Hotels & Resorts

What Does The Institutional Ownership Tell Us About TAJGVK Hotels & Resorts?

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 TAJGVK Hotels & Resorts. 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. 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 TAJGVK Hotels & Resorts' historic earnings and revenue below, but keep in mind there's always more to the story.

TAJGVK Hotels & Resorts is not owned by hedge funds. The Indian Hotels Company Limited is currently the company's largest shareholder with 26% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 24% and 19%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 68% stake.

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 TAJGVK Hotels & Resorts

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 data suggests that insiders own under 1% of TAJGVK Hotels & Resorts Limited in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about ₹5.4m worth of stock. This compares to a market capitalization of ₹23b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TAJGVK Hotels & Resorts. 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 42%, of the TAJGVK Hotels & Resorts stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

It appears to us that public companies own 26% of TAJGVK Hotels & Resorts. 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:

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. Take risks for example - TAJGVK Hotels & Resorts has 2 warning signs we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.