Indian Railway Catering & Tourism Corporation Limited (NSE:IRCTC) stock most popular amongst state or government who own 63%, while individual investors hold 20%

Key Insights

• Indian Railway Catering & Tourism's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• India owns 62% of the company
• 18% of Indian Railway Catering & Tourism is held by Institutions

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Every investor in Indian Railway Catering & Tourism Corporation Limited (NSE:IRCTC) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 63% to be precise, is state or government. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 20% of the company’s shareholders.

Let's delve deeper into each type of owner of Indian Railway Catering & Tourism, beginning with the chart below.

View our latest analysis for Indian Railway Catering & Tourism

What Does The Institutional Ownership Tell Us About Indian Railway Catering & Tourism?

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 Indian Railway Catering & Tourism. 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 Indian Railway Catering & Tourism, (below). Of course, keep in mind that there are other factors to consider, too.

Indian Railway Catering & Tourism is not owned by hedge funds. Our data shows that India is the largest shareholder with 62% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 10% and 1.3% of the shares outstanding respectively, Life Insurance Corporation of India and The Vanguard Group, Inc. are the second and third largest shareholders.

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

Insider Ownership Of Indian Railway Catering & Tourism

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

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.

Our information suggests that Indian Railway Catering & Tourism Corporation Limited insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own ₹2.3m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. For instance, we've identified 1 warning sign for Indian Railway Catering & Tourism that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

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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.