Institutions profited after Samvardhana Motherson International Limited's (NSE:MOTHERSON) market cap rose ₹48b last week but individual investors profited the most

Key Insights

• Samvardhana Motherson International's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 9 shareholders own 51% of the company
• Insiders own 14% of Samvardhana Motherson International

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Every investor in Samvardhana Motherson International Limited (NSE:MOTHERSON) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 4.6% increase in the stock price last week, individual investors profited the most, but institutions who own 23% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Samvardhana Motherson International.

View our latest analysis for Samvardhana Motherson International

What Does The Institutional Ownership Tell Us About Samvardhana Motherson International?

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.

Samvardhana Motherson International already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Samvardhana Motherson International's earnings history below. Of course, the future is what really matters.

Samvardhana Motherson International is not owned by hedge funds. The company's largest shareholder is Vivek Sehgal, with ownership of 12%. With 12% and 9.5% of the shares outstanding respectively, Shri Sehgals Trustee Company Private Limited and Sumitomo Electric Industries, Ltd. are the second and third largest shareholders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Samvardhana Motherson International

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. 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 a reasonable proportion of Samvardhana Motherson International Limited. Insiders own ₹148b worth of shares in the ₹1.1t company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Samvardhana Motherson International. 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

We can see that Private Companies own 22%, of the shares on issue. 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

Public companies currently own 9.5% of Samvardhana Motherson International stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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. Case in point: We've spotted 1 warning sign for Samvardhana Motherson International you should be aware of.

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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