Alkyl Amines Chemicals Limited (NSE:ALKYLAMINE) CEO Yogesh Kothari, the company's largest shareholder sees 6.4% reduction in holdings value
Key Insights
- Alkyl Amines Chemicals' significant insider ownership suggests inherent interests in company's expansion
- The largest shareholder of the company is Yogesh Kothari with a 58% stake
- Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Alkyl Amines Chemicals Limited (NSE:ALKYLAMINE), then you'll have to look at the makeup of its share registry. With 63% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And following last week's 6.4% decline in share price, insiders suffered the most losses.
Let's delve deeper into each type of owner of Alkyl Amines Chemicals, beginning with the chart below.
View our latest analysis for Alkyl Amines Chemicals
What Does The Institutional Ownership Tell Us About Alkyl Amines Chemicals?
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.
Since institutions own only a small portion of Alkyl Amines Chemicals, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Alkyl Amines Chemicals is not owned by hedge funds. The company's CEO Yogesh Kothari is the largest shareholder with 58% of shares outstanding. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. The second and third largest shareholders are Niyoko Trading & Consultancy Pvt and Purjeeko Trading & Consultancy Llp, with an equal amount of shares to their name at 3.8%.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Alkyl Amines Chemicals
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 the majority of Alkyl Amines Chemicals Limited. This means they can collectively make decisions for the company. Given it has a market cap of ₹106b, that means insiders have a whopping ₹67b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.
General Public Ownership
The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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
It seems that Private Companies own 9.2%, of the Alkyl Amines Chemicals stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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 - Alkyl Amines Chemicals has 1 warning sign we think you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.