To get a sense of who actually controls Marico Limited (NSE: MARICO), it is important to understand the ownership structure of the business. We can see that private companies have the lion’s share of the business with 47% ownership. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).
Institutions, for their part, represent 29% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let’s dig deeper into each type of Marico owner, starting with the table below.
See our latest review for Marico
What does institutional ownership tell us about Marico?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors have a significant stake in Marico. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Marico’s earnings history below. Of course, the future is what really matters.
We note that the hedge funds do not have a significant investment in Marico. Our data shows that Taurus Family Trust is the largest shareholder with 11% of the shares outstanding. The second and third shareholders are Gemini Family Trust and Valentine Family Trust, with an equal number of shares in their name at 11%.
Upon closer inspection, we found that more than half of the company’s stock is owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of Marico
The definition of business 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 is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on 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 Marico Limited. Insiders own 84 billion yen of shares in the company 652 billion yen. It is quite significant. Most would be happy to see the board invest alongside them. You might want to access this free chart showing recent insider trades.
General public property
With an 11% stake, the general public, made up mainly of individual investors, has some influence over Marico. 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 47% of Marico’s shares. 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 area for further research.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for Marico you should know.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
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.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.