Ganesh Housing Corporation Limited (NSE: GANESHHOUC) CEO Shekhar Patel’s holdings fell 14% in value following the recent pullback
A look at the shareholders of Ganesh Housing Corporation Limited (NSE: GANESHHOUC) can tell us which group is the most powerful. We can see that individual insiders hold the lion’s share of the company with 81% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
And last week, insiders suffered the biggest losses, as the stock fell 14%.
Let’s dive deeper into each Ganesh Housing owner type, starting with the table below.
See our latest analysis for Ganesh Housing
What does institutional ownership tell us about Ganesh housing?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Institutions have a very small stake in Ganesh Housing. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company is increasing its earnings, it may indicate that it is just beginning to attract the attention of those deep-pocketed investors. When several institutional investors wish to buy shares, we often see a rise in the price of the share. Past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Ganesh Housing is not owned by hedge funds. The company’s CEO, Shekhar Patel, is the largest shareholder with 37% of the shares outstanding. In comparison, the second and third shareholders hold around 35% and 3.4% of the shares. Interestingly, the second largest shareholder, Dipakkumar Patel, is also Top Key Executive, again, indicating strong insider ownership among the company’s top shareholders.
A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 72% stake.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider Ownership of Ganesh’s Dwelling
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders own more than half of Ganesh Housing Corporation Limited. This gives them effective control of the business. Considering it has a market capitalization of ₹22 billion, that means they have ₹18 billion in shares. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have been buying or selling.
General public property
With 16% ownership, the general public, consisting mostly of individual investors, has some influence over Ganesh Housing. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 3 warning signs for Ganesh Housing (2 are potentially serious!) which you should be aware of before investing here.
Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.