To get an idea of who really controls Schneider Electric Infrastructure Limited (NSE: SCHNEIDER), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie is made up of 75%-owned state-owned companies. In other words, the group faces the maximum upside potential (or downside risk).
As a result, public companies collectively achieved the highest score last week, with the company reaching a market capitalization of ₹30 billion after a 19% gain in the stock.
Let’s take a closer look at each type of Schneider Electric Infrastructure owner, starting with the table below.
See our latest analysis for Schneider Electric Infrastructure
What does institutional ownership tell us about Schneider Electric’s infrastructure?
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.
Schneider Electric Infrastructure already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Schneider Electric Infrastructure’s historic earnings and revenue below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Schneider Electric Infrastructure. Schneider Electric SE is currently the main shareholder of the company with 75% of the outstanding shares. This implies that they have majority control over the future of the company. With respectively 2.5% and 2.4% of the outstanding shares, Nippon Life India Asset Management Limited and Akash Bhanshali are the second and third 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. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Schneider Electric Infrastructure 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 likely be interested to learn that insiders hold shares of Schneider Electric Infrastructure Limited. Its market capitalization is only ₹30 billion and insiders hold ₹738 million of shares, in their own name. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.
General public property
The general public, including retail investors, owns 15% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Ownership of a public company
It appears to us that public companies hold 75% of Schneider Electric Infrastructure. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.
It is always useful to think about the different groups that own shares in a company. But to better understand Schneider Electric Infrastructure, we need to consider many other factors. Be aware that Schneider Electric Infrastructure displays 3 warning signs in our investment analysis and 2 of them are a little unpleasant…
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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.
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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.