If you want to know who actually controls Sun Pharma Advanced Research Company Limited (NSE: SPARC), then you will need to look at the makeup of its share register. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. I like to see at least a little insider ownership. As Charlie Munger said, âShow me the incentive and I’ll show you the result.
With a market cap of 70 billion yen, Sun Pharma Advanced Research is a decent size, so it’s probably on the radar of institutional investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Sun Pharma Advanced Research.
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What does Institutional Ownership tell us about Sun Pharma’s advanced research?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
Sun Pharma Advanced Research already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Sun Pharma Advanced Research’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Sun Pharma Advanced Research. The main shareholder of the company is Shanghvi Finance Pvt Ltd, with a 52% stake. With such a huge stake in the property, we infer that they have significant control over the future of the business. Dilip Shanghvi is the second largest shareholder holding 11% of the common shares, and Sun Pharmaceutical Industries Ltd., Employee Benefit Trust owns approximately 3.9% of the shares of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Sun Pharma Advanced Research Insider Property
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It appears that insiders own a significant proportion of Sun Pharma Advanced Research Company Limited. It has a market capitalization of just 70 billion yen and insiders have 11 billion yen of shares in their own name. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 20% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
It appears that private companies own 57% of shares in Sun Pharma Advanced Research. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of ââresearch.
While it is worth considering the different groups that own a business, there are other factors that are even more important. To this end, you should inquire about the 3 warning signs we spotted with Sun Pharma Advanced Research (including 2 essential).
Sure this might 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 from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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