Is Container Corporation of India Limited (NSE:CONCOR) popular among institutions?

A look at the shareholders of Container Corporation of India Limited (NSE: CONCOR) can tell us which group is the most powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decline in insider participation in companies that were previously public.

Container Corporation of India is quite a big company. It has a market capitalization of ₹373b. Normally, institutions own a significant share of a business of this size. Our analysis of company ownership, below, shows that the institutions are visible on the share register. We can zoom in on the different ownership groups, to know more about Container Corporation of India.

See our latest analysis for Container Corporation of India

NSEI: Distribution of ownership of CONCOR February 13, 2022

What does institutional ownership tell us about Container Corporation of India?

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.

As you can see, institutional investors hold a sizeable share of Container Corporation of India. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the earnings history of Container Corporation of India below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI: CONCOR Earnings and Revenue Growth February 13, 2022

We note that hedge funds have no significant investment in Container Corporation of India. India is currently the company’s largest shareholder with 55% of the outstanding shares. This essentially means that they have considerable influence, if not absolute control, over the future of the company. With 2.1% and 1.8% of shares outstanding, respectively, Kotak Mahindra Asset Management Company Limited and DSP Investment Managers Pvt. ltd. are the second and third largest shareholders.

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. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider ownership of Container Corporation of India

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 data suggests that insiders hold less than 1% of Container Corporation of India Limited in their own name. Keep in mind that this is a big company and insiders own shares worth ₹336,000. The absolute value may be more important than the proportional share. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.

General public property

With a 14% stake, the general public, consisting mainly of individual investors, has some influence over Container Corporation of India. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 1 warning sign for Container Corporation of India which you should be aware of before investing here.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

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.

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.

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