If you want to know who really controls Rajvir Industries Limited (

NSE:RAJVIR

),scout canned lobster then you’ll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Rajvir Industries is a smaller company with a market capitalization of ₹78m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. Let’s delve deeper into each type of owner, to discover more about RAJVIR.

See our latest analysis for Rajvir Industries

NSEI:RAJVIR Ownership Summary January 3rd 19

What Does The Lack Of Institutional Ownership Tell Us About Rajvir Industries?

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Rajvir Industries might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

NSEI:RAJVIR Income Statement Export January 3rd 19

Hedge funds don’t have many shares in Rajvir Industries. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Rajvir Industries

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

It seems that insiders own more than half the Rajvir Industries Limited stock. This gives them a lot of power. Given it has a market cap of ₹78m, that means they have ₹61m worth of shares. It is good to see this level of investment. You can

check here to see if those insiders have been buying recently.

Story continues

General Public Ownership

With a 20% ownership, the general public have some degree of sway over RAJVIR. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Rajvir Industries better, we need to consider many other factors.

I like to dive deeper

into how a company has performed in the past. You can access

this

interactive graph

of past earnings, revenue and cash flow for free

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Of course,

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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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

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