To get an idea of ​​who really controls Linde India Limited (NSE: LINDEINDIA), it is important to understand the ownership structure of the company. With a 75% stake, public companies hold the maximum share in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).

And after the stock price fell 4.0% last week, public companies suffered the most losses.

Let’s take a closer look at what different types of shareholders can tell us about Linde India.

Our analysis indicates that LINDEINDIA is potentially overvalued!

NSEI: LINDEINDIA Ownership Breakdown October 13, 2022

What does institutional ownership tell us about Linde 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.

We can see that Linde India has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking Linde India’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

NSEI: LINDEINDIA Earnings and Revenue Growth October 13, 2022

Linde India is not owned by hedge funds. Linde plc is currently the largest shareholder, with 75% of the shares outstanding. This implies that they have majority control over the future of the company. In comparison, the second and third shareholders hold approximately 4.0% and 2.1% of the shares.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There is some analyst coverage of the stock, but it could still become better known over time.

Linde India Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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.

Shareholders would probably be interested to learn that insiders hold shares of Linde India Limited. Insiders have a significant stake worth ₹5.6 billion. Most would see this as a real positive. It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a 13% stake in Linde India. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

Public companies currently hold 75% of Linde India shares. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Linde India, we need to consider many other factors. Take risks for example – Linde India has 1 warning sign we think you should know.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

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 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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